Turkey Clears E.ON-Verbund Asset Swap in Enerjisa

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Turkish Competition Board will allow Verbund AG (OP:OEZVY) (Vienna, Austria) to perform an asset swap with E.ON (PINK:EONGY) (Dusseldorf, Germany) in Enerjisa (Istanbul,Turkey), the 50:50 joint venture with Sabanci Holding (ISE:SAHOL) (Istanbul, Turkey).

According to the asset swap agreement, E.ON will take Verbund's 50% stake in Turkish power producer Enerjisa, in exchange for E.ON's interest in eight hydroelectric power plants in Germany. E.ON wants to expand in Brazil and Turkey, where energy demand is expected to grow faster than in Europe. Verbund, which bought into Enerjisa for $424 million in 2007, said it would re-focus its efforts on Austria and Germany. For additional information on the Enerjisa deal, see December 6, 2012, article - Verbund and E.ON Agree to Swap Stakes in Turkey's Enerjisa.

Enerjisa is planning for 8,000 MW of power capacity in Turkey by 2020 and a 10% share of the electricity generation market. The company aims to increase the grid customers to 6 million from 3.5 million in Ankara.

"E.ON and Sabanci will invest as much as $5.2 billion in Enerjisa to realize the power capacity target," said Selahattin Hakman, chairman of Enerjisa, who is also the head of the Energy Group in Sabanci Holding.

The company plans to increase its generation capacity to 5,321 MW by 2017 from 1,835 MW at the end of 2012. Last year, Sabancý Holding announced it was preparing to go public for Enerjisa in 2014.

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