Sabancı to sell cut in Enerjisa before IPO

Hacı Ömer Sabancı Holding AŞ plans to lower the debt of subsidiary Enerjisa Enerji Üretim AŞ ahead of initial public offering (IPO) by selling a stake, chief of the the group’s energy segment Mehmet  Göçmen said. He added the utility is planning the listing for the end of the next year or the begining of 2018. Göçmen said it is expected to be one of the biggest such events in the history of Turkey.

German E.ON AG operates in Turkey through Enerjisa, fifty-fifty joint venture with Sabancı Group. The company’s business includes generation, trading, distribution and retail of electricity. Its total debt stands at TRY 12 billion (EUR 3.75 billion), Göçmen stated. More than half is denominated in euros, and grid operations also account for that much, according to him. The company chief stressed between 10% and 20% in distribution and retail units may be sold to investors, according to a report by Bloomberg.

Enerjisa’s senior executive Kıvanç Zaimler said the company has approximately nine million customers and contributes to the total energy production in Turkey with 4%. He said this year the utility has a goal to expand 28% to reach 3.7 GW of capacity this year, one half being renewables, adding that overall investments in production in 2016 will be EUR 5 billion. Total placement in Turkey since 2005 is EUR 9.8 billion, 60% coming from loans, according to company officials. Another aim is to increase sales by 8% on an annual basis again, from last year’s EUR 3.56 billion. Bloomberg earlier reported negotiations on the sale of a part in ownership were conducted with investors from China.