Page 109 - TURKRptJun19

generated from our electricity distribution operations and retail sales to regulated customers, which are both subject to regulated tariffs set by the market regulator EPDK, any change on these tariff components and/or calculation methodologies mean a significant deviation from the Enerjisa plan,” the company said. It also noted that it is subject to financial market risks relating to interest rate fluctuations due to its financial borrowings as well as foreign exchange rate fluctuations due to the Feed-in-Tariff regulation.
The European Bank for Reconstruction and Development (EBRD) said on May 15 it is mulling providing €17.5mn long-term loan to co-finance the construction of the 32.4 MW KITKA wind farm project in eastern Kosovo. The project will be implemented by Air Energy, a special purpose vehicle established to implement the project. Air Energy is fully-owned by Guris Insaat ve Muhendislik, which is part of the Turkish engineering and construction conglomerate Guris Group. The total cost of the project is estimated at €73mn. The EBRD board of directors will take a final decision on the loan on June 19.
Energy firm Zorlu Enerji has sold its 100% stake in Cumra Gunes Enerjisi to KHM Enerji for a total consideration of $6.4mn. As part of the deal, Zorlu also transferred to the buyer a production licence for a solar power plant with 18MW installed capacity that Cumra Gunes plans to build in the central Anatolian province of Konya. Founded in 1993, Zorlu Enerj operates in the fields of electricity and steam generation, electricity sales, electricity distribution, solar panel sales and installation, natural gas sales and distribution. In the first quarter of this year, it posted a net income of TRY35.8mn ($5.9mn), almost unchanged from the TRY35.3mn profit it made a year ago. Revenues in the first three months of the year increased to TRY1.87bn from TRY1.28bn. Zorlu Enerji’s financing costs jumped to TRY641mn in the quarter from TRY438mn a year ago.
9.2.10 Other sector corporate news
US-based Lincoln Electric Holdings has entered into an agreement to purchase an additional 49.6% stake in Turkey’s Askaynak. Lincoln secured a 50% stake in the company back in 1998. Askaynak is a supplier and manufacturer of welding consumables. Products include welding equipment such as plasma and oxyfuel cutting equipment, and robotic welding systems. The company’s annual revenues are approximately $79mn. The closing of the transaction is subject to approvals from local regulatory bodies. Headquartered in Cleveland, Ohio, Lincoln Electric designs and manufactures welding products, robotic arc welding systems and plasma and oxyfuel cutting equipment. It has 60 manufacturing locations, including operations and joint ventures in 19 countries.
The volume of disclosed mergers and acquisitions (M&A) transactions in Turkey increased by 17% to reach $12bn in 2018, according to a January report by Deloitte Turkey. The total number of deals dropped to 256 last year, down 13% from the previous year. The number of deals sealed by foreign investors was 74, down slightly from 70 deals in 2017. “Foreign investors, by cherry-picking M&A opportunities across sectors, made the highest contribution since 2015, generating 63% of the total annual deal volume,” the report said. European investors sealed the highest number of deals among foreign investors, generating 49% of foreign investors’ deal activity.
Turkey’s Anadolu considers McDonald’s operator options. Anadolu Group Holding has said that it will authorise an investment bank or a securities firm to work on strategic options for Anadolu Restoran (McDonald's) in Turkey and conduct talks with third parties in this regard. The holding company did not provide further details but said that it is considering options for McDonald’s operations as part of its strategy of “evaluating the assets in our portfolio with maximum efficiency.” According to an presentation to investors posted on the company’s website, McDonald’s has 255 restaurants across Turkey with some 6,000 employees, serving more than 100mn customers annually. Operations
109 TURKEY Country Report June 2019 www.intellinews.com