Turkcell to acquire wind plant operator Boyut Grup Enerji

Turkish mobile phone operator Turkcell [IST:TCELL] said that its wholly-owned subsidiary Turkcell Enerji has signed a share transfer agreement to acquire all the shares of local Boyut Grup Enerji, the owner of the Karadag wind power plant in Izmir.

The transaction is based on an enterprise value of $29.6 million (25 million euro). After adjusting for the net debt of Boyut Grup Enerji, the buyer shall make a payment of $11.5 million, with $500,000 of this amount to be paid after two years, Turkcell said in a statement earlier this week.

The transfer of shares is subject to the approval of the respective authorities and fulfillment of various conditions precedent, the company also said.

Turkcell Enerji, operating under Enerjicell brand, serves individual and corporate customers, who are eligible to choose their own electricity suppliers.

"With this acquisition, we aim to strengthen our sustainability initiative, which is a focus area for us, by meeting our energy need from renewable resources of our own. This is another step towards our target of completely meeting our electricity consumption from renewable sources by 2030 and becoming carbon neutral by 2050," Turkcell said.

The anticipated annual gross revenue of the Karadag wind power plant during the 2021-2026 period is approximately $5 million, the company added.

The power plant, which has an 18 MW mechanical installed capacity, commenced operations in 2016 and holds a license that will expire in 2057. The plant also has a state purchase guarantee until the end of 2026, according to Turkcell's statement.

Istanbul-based Turkcell is a converged telecommunication and technology services provider. The company serves its customers with voice, data, TV and value-added consumer and enterprise services on mobile and fixed networks. Turkcell's shares have been traded on the Borsa Istanbul and New York Stock Exchanges since 2000.

(1 euro = 1.95583 levs)

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