Turkish construction firm and airport operator conglomerate TAV Group is in talks with banks to raise a $250-million loan for developing airports in the Saudi Arabian cities of Yanbu and Qassim, said a report citing a top official.

In addition, the Turkish group has finalised a deal to buy a major stake in construction conglomerate Saudi Oger, which also operates the kingdom's Madinah airport, reported Bloomberg citing its chief executive Sani Sener.

The disposal of the 16.7 per cent stake owned by Saudi Oger, the construction company that belongs to Lebanon’s Hariri family, leaves the ownership of Tibah Airports Development, as the airport operator is known, equally split between TAV and Rajhi Holding Company, stated the report.

The Turkish group will also bid for the Istanbul unit of Malaysia Airports Holdings if a stake in the operator of Turkey’s second-biggest airport is put up for sale, stated Sener while talking to reporters in Dubai on Tuesday.

TAV Havalimanlari Holding is “definitely interested” in looking at Istanbul Sabiha Gokcen Airport should requests for proposals be made, he added.

Once the news was out, TAV shares rose as much as 2.4 per cent to 16.55 liras in Istanbul, the highest in a year.

Malaysia Airports plans to retain control of the company, said people familiar with the plan.
 
TAV has a contract to operate Istanbul’s Ataturk International Airport, the country’s biggest, until the end of 2020, but is preparing for it to be closed by a larger hub, reported Bloomberg.

In 2014, TAV failed to get a stake in Sabiha Gokcen when Malaysia Airports exercised its right of first refusal on the shares, it added.