Dogan Seeks to Buy Stake of CEZ’s Partner at Turkish Power Grid

Dogan Sirketler Grubu Holding AS (DOHOL) started talks to acquire 50 percent stake at Akcez Enerji Yatirimlari Sanayi & Ticaret AS, a joint venture with Czech CEZ AS (CEZ) that operates an electricity grid in western Turkey.

Unit Dogan Enerji Yatirimlari Sanayi & Ticaret AS, is having talks with CEZ’s partner Akkok Sanayi Yatirim & Gelistirme AS, Dogan said in a filing with the Istanbul Stock Exchange yesterday. Akcez bought Sedas Sakarya Elektrik Dagitim AS from a government auction for $600 million in 2008.

Akenerji Elektrik Uretim AS (AKENR), another joint venture between CEZ and Akkok, announced Aug. 3 it will sell a 45 percent stake at Akcez to the parents for $140 million, valuing the unit Akcez at $311 million. The transaction was completed Dec. 19.

“We currently value the entity approximately 1 billion liras including debt,” Global Menkul Degerler AS, an Istanbul- based brokerage house, said in an e-mailed note today. “With more than $1.2 billion net holding cash, Dogan Holding is eligible to execute such a transaction.”

Dogan Holding jumped as much as 4.7 percent to 0.89 lira in Istanbul trade, the highest level in a month, and rose 1.2 percent to 0.86 lira at 11:40 a.m.

The Sedas power grid, which covers the industrial provinces of Sakarya, Bolu and Duzce, has 1.4 million customers and sells more than 7.5 billion kilowatt-hours of electricity annually, according to its website.

Dogan Holding, which has interests in media and seeks to expand in energy industry, bought two wind power plants with combined 126 megawatts of capacity for 240 million euros ($301 million) from Agaoglu group in June. Dogan Enerji also applied yesterday to buy the 600-megawatt Seyitomer coal-fired power plant from a government auction.

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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