Renewables

Zorlu Energy merging its geothermal, renewables businesses for IPO

Zorlu Energy merging geothermal, renewables IPO

Photo: Zorlu Energy

Published

July 16, 2020

Country

Comments

0

Share

Published:

July 16, 2020

Country:

Comments:

0

Share

Zorlu Enerji Elektrik or Zorlu Energy intends to establish a renewables subsidiary and prepare it for an initial public offering. The new company, Zorlu Yenilenebilir Enerji, will focus on geothermal projects, according to the agenda prepared for the general assembly next month.

Zorlu Jeotermal Enerji Elektrik, Zorlu Doğal Elektrik and Rotor Elektrik, fully owned subsidiaries of Zorlu Enerji Elektrik – Zorlu Energy, are about to be merged into one entity. The member of Zorlu Energy Group continued with the preparations for a spinoff, saying the new firm, Zorlu Yenilenebilir Enerji (Zorlu Renewable Energy), would be listed on the stock market.

The business will be focused on the geothermal energy sector as, how Zorlu Energy Chief Executive Officer Sinan Ak put it earlier this year, it is a strategic niche.

IPO planned for next year

The producer of electricity from renewable sources also has plans to invest in solar and wind power. It already has hydroelectric, geothermal and wind power assets.

The revenue from a stake sale will be used for growth and debt reduction, according to CEO Sinan Ak

The plan is scheduled for a vote at an extraordinary general assembly on August 18. The initial public offering is seen in the first half next year, which is a delay from original plans. Ak said the revenue from a stake sale would be used for growth and debt reduction.

Optimistic view regardless of pandemic

He told Bloomberg HT last month that households’ consumption of electricity increased by 15% amid the COVID-19 pandemic, against a 40% slump in the industry. Measures to contain the novel coronavirus led to some loss in revenue, the CEO stressed. Nevertheless, he offered an optimistic view for the energy company, pointing to favorable movements in interest rates and foreign exchange.

Zorlu Holding is a diversified conglomerate, operating also in the areas ranging from textiles to financial services.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Romania to triple its solar capacity to 4.25 GW by 2030

Romania to triple its solar capacity to 4.25 GW by 2030

20 October 2021 - Solar photovoltaic capacity is projected to triple during 2021-2030, from 1.39 GW in 2020 to 4.25 GW in 2030.

EPS solarnu elektranu lokaciji Kolubaru B

Serbia’s EPS wants to build solar park on suspended coal plant project site

20 October 2021 - EPS will commission research for the purpose of installing a solar power plant at the location of the recently halted coal plant Kolubara B

Tuzla to decarbonize district heating system

Tuzla plans to decarbonize its district heating system

19 October 2021 - Tuzla intends to cut heating emissions to 4% of their current level by 2040 with desulphurization, renewables and network expansion

coldplay

Coldplay to use fans’ kinetic energy to cut CO2 emissions on world tour

15 October 2021 - To mitigate the carbon footprint during the 2022 tour, the British rock band will use solar panels, biofuel, a mobile rechargeable battery, and a kinetic floor to convert fans’ movements into energy.