IHC takes $490 million stake in Turkey’s Kalyon

The transaction includes solar power projects in Turkey’s Karapanar and Gaziantep regions and a wind power project in Ankara

By Staff Report

Published: Thu 11 Aug 2022, 5:14 PM

International Holding Company (IHC) on Thursday said it had acquired a 50 per cent stake in Turkey’s Kalyon Enerji for Dh1.8 billion ($490 million) through one of its subsidiaries.

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

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

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

"With this transaction, IHC is further accelerating its growth in the renewable energy sector by partnering with Kalyon Enerji. This will complement our renewable energy portfolio, which we will continue to grow across different markets,” he said.

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

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

Cemal Kalyoncu, Kalyon Holding chairman of the board, said that this strategic cooperation is of great importance not only for the two countries but also on a regional scale.

“The steps we have taken in the energy sector and the investments we have made have attracted the attention of foreign investors so far. This strategic cooperation is of historical importance in terms of realising both potential projects in Turkey, and new markets and business fields in geographies, that we plan to enter in the world; it will make a great contribution to our geography as well as our country," he said.

“We have always been committed to enriching human life by contributing to social development without losing environmental awareness. With climate change being the defining challenge of our time, we must accelerate our efforts to transform our planet into a sustainable green economy,” he added.

The deal follows a visit last November by the UAE’s now-president, His Highness 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.

— With inputs from Reuters