Abu Dhabi conglomerate International Holding Co (IHC) acquired a 50% stake in Turkish Kalyon Energy for 1.8 billion dirhams ($490 million) through one of its subsidiaries.
Kalyon Enerji is part of Turkish conglomerate Kalyon Holding, which is engaged in the construction, energy and aviation industries. IHC subsidiary International Energy Holding (IEH) will acquire the stake, the conglomerate 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.
IHC is the most valuable company on the Abu Dhabi bourse with a market capitalization of around $167 billion.
Chief Executive Syed Basar Shueb said the deal was IHC’s second-biggest acquisition ever in the renewable energy sector.
Kalyon Holding, which has large solar and wind energy concessions in Turkey, was in June reported having been in advanced talks with IHC to partner on strategic assets.
The transaction has great importance not only for Türkiye and the United Arab Emirates (UAE) but also on a regional scale, the chairman of Kalyon Holding, Cemal Kalyoncu, said in a statement.
“The steps we have taken in the energy sector and the investments we have made have attracted the attention of foreign investors,” Kalyoncu noted.
“As a result of our meeting and mutual evaluation with IEH, we agreed to transfer 50% of Kalyon Energy shares. This cooperation will be one of the most important milestones of Kalyon Holding on its way to becoming a global brand.”
“As climate change is the defining challenge of our time, we will continue to step up our efforts to transform the world into a sustainable green economy,” he added.
Türkiye obtains the vast majority of its energy from imports and in order to boost its renewable energy production, it began large-scale solar and wind power station tenders in 2017.
The Kalyon Karapınar Solar Power Plant, which is included in the deal, will be capable of meeting the annual electricity needs of 2 million people once it is completed in 2023, IHC said.
The 1,350-megawatt (MW) solar power plant is being built in the central province of Konya. It will be the biggest solar power plant in Europe built on a single site and one of the five biggest in the world. The total investment to be made in the massive project is estimated to be around $1 billion.