Wednesday, September 28

Abu Dhabi’s IHC takes $490 mln stake in Turkey’s Kaylon


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DUBAI — Abu Dhabi’s International Holding Co on Thursday said it had acquired a 50% stake in Turkey’s Kaylon Enerji for 1.8 billion dirham ($490 million) through one of its subsidiaries.

Kaylon Enerji is part of Turkey’s Kaylon Holding, which has interests in construction, energy and aviation. IHC subsidiary International Energy Holding will acquire the stake, IHC said.

The transaction includes solar power projects in Turkey’s Karapınar and Gaziantep regions and a wind power project in Ankara, IHC said in a statement to the Abu Dhabi stock market.

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Chief Executive Syed Basar Shueb said the deal was IHC’s second-biggest acquisition ever in the renewable energy sector.

Reuters reported in June that Kaylon Holding, which has large solar and wind energy concessions in Turkey, was in advanced talks with IHC to partner on strategic assets.

The Kalyon Karapınar Solar Power Plant, which is included in the deal, will be capable of meeting annual electricity needs of 2 million people once it is completed in 2023, IHC said.

The deal follows a visit last November by the United Arab Emirates’ now-president, Sheikh Mohammed bin Zayed Al Nahyan, to Turkey where he met Turkish President Recep Tayyip Erdogan.

During the visit, which followed years of animosity between the two nations, Emirati and Turkish officials signed billions of dollars in investment deals, including for energy.

IHC is chaired by Sheikh Tahnoon bin Zayed, the UAE’s national security adviser and a brother of Sheikh Mohammed. ($1 = 3.6727 UAE dirham) (Writing by Alexander Cornwell; Editing by Robert Birsel)



financialpost.com