Shares in Sabancı Holding rose on Monday after analysts said the Turkish financial, industrial and retail conglomerate may consider divesting units with low net profit margins and returns on equity, after a meeting on Friday between its top executives and some analysts.
Sabancı, whose stock was up 1.3% on the Istanbul bourse, could consider divesting technology retailer Teknosa and food retailer Carrefoursa, among others, a report by Reuters cited some analysts who attended the meeting.
Carrefoursa's stock jumped around 8.6% at 10:41 a.m. GMT to its highest in nearly eight months. Teknosa and Kordsa, an industrial producer of cord and other materials, were off 0.8% and 0.7%, respectively.
Sabancı Holding did not immediately respond to requests for comment.
Iş Yatırım, a brokerage and research firm, said in a note that Sabancı may divest from certain units immediately, while others could undergo restructuring before being sold.
"Food retail is among the businesses to be exited," it said of Carrefoursa, adding that "if Teknosa’s marketplace digital transformation fails, an exit could be considered there as well."
Deniz Yatırım, another Turkish brokerage firm, said the holding company may initially divest from Carrefoursa and Teknosa as part of a broader strategy to focus on sectors that generate foreign currency revenue and are subject to relatively lighter regulatory oversight.
"Efforts to enhance Kordsa's operations will continue, but an exit from the business may be considered if those efforts do not succeed," it said.
According to data compiled by Deniz Yatırım, the return on equity for Kordsa, Teknosa and Carrefoursa stands at -10.5%, -104.9% and -311.6%, respectively.
