Abu Dhabi- Emirates International Holdings (IHC), one of the giant investment companies in the Middle East, has strengthened its business portfolio in the clean energy sector, given the significant gains that it can reap from sustainable projects in the future.
The company announced Thursday that it had acquired a 50 percent stake in Turkey’s Kalyon Energy for 1.8 billion dirhams ($490 million) through one of its subsidiaries.
The agreement is the culmination of the visit of Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, last November to Turkey, where he met President Recep Tayyip Erdogan.
Syed Basr Shuaib: Calyon Energy deal is the second largest ever acquisition
During the visit, which came after years of estrangement between the two countries, Emirati and Turkish officials signed investment deals worth billions of dollars that included the energy sector.
IHC said in a disclosure to the Abu Dhabi Stock Exchange that “its subsidiary International Energy Holding will acquire the stake” in Kalyon Energy, which is part of the Turkish Kalyon Holding Group, which operates in the fields of construction, energy and aviation.
The Emirati company explained that “the deal includes solar energy projects in the Karapinar and Gaziantep regions and a wind energy project in Ankara.”
The deal comes four months after IHC announced that it would invest in three Indian companies focusing on the environment, owned by India’s Adani Group, worth about $2 billion.
Global Holding, which has a portfolio of more than $23.7 billion in assets, is among the arms of the Abu Dhabi government driving the economic diversification agenda in the Gulf emirate.
Officials in the company headed by Sheikh Tahnoun bin Zayed Al Nahyan, National Security Adviser to the UAE, confirm that this acquisition is part of the global holding company’s long-term investment strategy in the green energy sector.
And the official Emirates News Agency quoted the CEO of Global Holding, Sayed Basr Shuaib, as saying that “the deal is the company’s second largest acquisition ever in the renewable energy sector so far.”
“Through the transaction, IHC is accelerating its growth in the renewable energy sector in partnership with Calyon Energy, as this acquisition constitutes an important addition to our renewable energy portfolio, which we will continue to grow across different markets,” he stressed.
◙ Global Holding is among the arms of the Abu Dhabi government that leads the economic diversification agenda in the Gulf Emirate
The deal includes completing the implementation of a 1,000-megawatt solar power plant project in the Karabinar district in Konya, a one-GW wind power project developed by Yaka, and a 100-megawatt solar power project in Ankara.
In addition, the completion of a solar energy project with a production capacity of 50 megawatts in Gaziantep, and other renewable projects in different cities of Turkey.
Global Holdings indicated that the Kalyon Karabinar solar power plant, which is included in the deal, will be able to meet the annual electricity needs of two million people once it is completed in 2023.
The Kalyon Karabinar plant was built on an area of approximately 20 million square meters, and the installation and commissioning of 3.5 million panels began in August 2020.
“This strategic cooperation is of great importance not only for the two countries, but also at the regional level given that climate change is the fundamental challenge of our time,” said Kemal Kalyon, Chairman of Calyon Holdings.
Commenting on the completion of the acquisition, he said, “The steps we have taken in the energy and investment sector have attracted a high percentage of foreign investors’ attention so far.”
“This strategic cooperation is of historical importance in terms of realizing both potential projects in Turkey, new markets and business areas in geographical areas, which we plan to enter into the world,” Kalyon added.