Turkish Energy Conglomerate Eyes African Projects
STFA Yatirim Holding (STFA), the Turkish conglomerate focused on construction and energy, is planning to expand its operations in Africa, CFO Altan Dinc told a conference in Istanbul April 20.
The company is seeking joint venture partners in sub-Saharan Africa to diversify its construction business, he said. Infrastructure projects, such as ports, railways and powerlines are being studied in Ivory Coast, Mozambique and Angola, Dinc added. He also said that each joint venture can be scaled between $50mn and $200mn.
STFA is building a port and a coal terminal in Safi, Morocco, through a JV with Moroccan company SGTM.
"We're interested in bankable countries, where international financial institutions have relations with governments. We'd like to invest in ports primarily, but will also consider other infrastructure projects in the region," Dinc said.
Funding structures are being discussed with groups such as African Development Bank, IFC and World Bank, Dinc said. He didn't specify the number of joint ventures it is evaluating in Africa. STFA is controlled by the Taskent family, with Hong Kong-based ADM holding a 14.7% stake.
STFA posted a turnover of $1.4bn in 2015, up by 15% compared with 2014. Some $600mn came from construction, while nearly $500mn came from its energy business. "We're aiming to grow in construction and energy businesses. The share of energy business in consolidated figures may increase exponentially," Dinc said.
Among its businesses in Turkey, STFA owns Enerya Gas Dagitim which distributes 4bn m3/yr of natural gas in 11 cities as well as electricity.
Murat Basboga