Shares in Türkiye’s protection large Otokar jumped 10% to the highest of the BIST 100 index on Monday after the army and business car producer stated it had been invited to Romanian army car contract talks for a deal valued at $940 million (TL 32.20 billion).
Otokar, in an announcement on the general public disclosure platform (KAP), stated on Friday it had been invited to contract negotiations for an armored car procurement tender held by Romania, price some $940 million.
The deal represents one in all Otokar’s largest worldwide contracts and bolsters its rising presence within the European protection market.
“In our special situation statement dated March 20, 2024, it was announced to the public that our company submitted an offer to the tender opened by C.N. Romtehnica S.A. (Romtehnica), a company of the Romanian Ministry of National Defense, for the purchase of 4×4 Tactical Wheeled Light Armored Vehicles,” Otokar stated within the KAP assertion.
“Following the completion of the technical evaluation, field tests and commercial evaluation processes, the official invitation letter for contract negotiations was sent to our company by the tender authority,” it added.
Furthermore, it disclosed that the tender amounting to 4,263,286,655.66 Romanian leu ($939.8 million) covers the availability of a complete of 1,059 4X4 tactical wheeled mild armored autos and a few built-in logistics help providers.
It added that 278 autos are set to be produced in Otokar services, and the remaining half in Romania, in a construction to be decided sooner or later.
“The signing of the contract and other important developments regarding the subject will be shared with our investors,” the corporate stated.
“This contract represents 82% of the company’s revenue over the last four quarters, and it is expected to positively impact the company’s operational profitability and stock performance,” brokerage Halk Yatırım stated.
Otokar’s relationship with Romania has been rising since 2018 when the corporate delivered 400 buses underneath a earlier settlement. To help its growing operations within the nation, Otokar established a subsidiary, “Otokar Romania,” to handle its contracts and collaboration with the Romanian authorities.
Source: www.dailysabah.com