Goldman to Buy 15.1 Percent Aksa Enerji Stake for $268 Million

Goldman Sachs Group Inc. (GS) agreed to buy as much as 15.1 percent of Aksa Enerji Uretim AS (AKSEN), one of Turkey’s two biggest power producers, for $268 million, revising down an earlier agreement to get a 26.5 percent stake for $450 million, Aksa owner Kazanci Holding AS said today.

Goldman Sachs agreed to manage a syndicated loan of $460 million from international banks to Aksa, which will in part be used to repay a $192 million loan it arranged for Kazanci in August, extending the loan’s maturity to 5 years from one year and a week, Kazanci said in a statement to the Istanbul Stock Exchange today. The remaining $268 million will be used for the acquisition of shares after a capital increase at Istanbul-based Aksa Enerji, it said. The transaction is subject to further negotiations and regulatory approvals, according to the statement.

“The cash facility will be used in investments of Aksa,” company chairman Cemil Kazanci said in a telephone interview. The statement didn’t say why the initial plan announced on July 25 was revised downward.

The price Goldman will pay for the Aksa stake values the Istanbul-based utility at $1.77 billion, or 66 percent higher than the current market capitalization based on the share price of 3.27 liras which rose 1.2 percent at 13:30 p.m. on the Istanbul Stock Exchange, according to Bloomberg data.

Turkey’s energy industry is luring international companies as electricity demand is set to grow an average 6.3 percent annually over the next 20 years, Hasan Koktas, head of the energy-market regulator, said June 15. Italy’s Ansaldo STS SpA won a 640 million-euro ($919 million) order for an 865-megawatt plant this month. Austria’s Verbund AG (VER) and OMV AG, Germany’s RWE AG and U.S.-based AES Corp. have also bought power assets in Turkey.

Goldman will have the right to sell all or part of its Aksa Enerji stake after the first year of the closing of the agreement, expected in November, and before the fifth year, the statement said. Goldman will also have the option to sell the stake back to Kazanci at the initial purchase price at the end of the fifth year, in case it fails to find other buyers, it said. Goldman will get cash and Aksa shares as collateral from Kazanci for the transactions, it said.

Kazanci Holding will get $93 million from the sale, corresponding to a 5.24 percent Aksa Enerji stake, and the remaining $175 million, equaling 9.86 percent stake, will go to the energy utility’s coffers to prop up its capital for investment, the statement said.

Aksa has power-generation capacity in excess of 1,500 megawatts aims to raise its capacity to over 2,000 megawatts Kazanci said July 25. Competitor Enerjisa, a venture owned by Verbund and Turkey’s Haci Omer Sabanci Holding AS, has a capacity of 1,557 megawatts, according to its website.

To contact the reporter on this story: Ercan Ersoy in Istanbul at eersoy@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

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