Turkish Enerjisa Mulls Minority Stake Sale
Enerjisa, the private Turkish energy company, plans to sell up to a combined 30% stake in its distribution and retail subsidiaries to consolidate its balance sheet ahead of an IPO in late 2017, Mehmet Gocmen, Sabanci Holding’s Energy Group Head, said.
Addressing the annual results press conference at owner Sabanci Holding offices in Istanbul April 5, he said the equity injection will help reducing Enerjisa’s debt pile, which stood at around Turkish lire 13bn ($4.3bn) in 2015, Gocmen said. Its debt/Ebitda ratio is 6.5, which is planned to be reduced to less than 5 by the year-end, he said.
"The sale will also have a positive effect before an initial public offering, which is planned for late 2017," he said.
The company may sell minority stakes in its distribution and retail subsidiaries as a package to a strategic or a financial investor, he said while declining to elaborate on the amount to be raised through the sale. Management is also holding talks on investment in unfinished projects and license portfolios up for sale.
The Turkish energy producer is a joint venture controlled by Turkey's Sabanci Holding and Germany's energy company E.ON. Enerjisa operates in the power generation, transmission, and distribution segments.
The company invested $11bn in the last 10 years, and has distribution companies in 14 cities, which serve more than 9mn subscribers.
The installed electric power generation capacity will reach 3.7GW in December 2016 from its current level of 2.9GW, Enerjisa CEO Kivanc Zaimler said.
The share of renewable energy in the power generation capacity is now at 65%, Zaimler said, adding that by further focusing on domestic and renewable resources they will be able to evaluate growth opportunities for the long term.
Revenues have increased 8% to around $4bn in 2015, with plans to increase operational profit by 40% this year, Gocmen said. He also said that along with the developments in Turkey's hinterland and the geopolitical risks arising from global issues, energy security is more important than ever.
Murat Basboga