Sabanci Plans Share Sales as Energy Drives Turkey Group’s Growth

Sabanci, Turkey’s second-biggest business group, plans initial public offerings and secondary share sales for its units after saying its energy venture will deliver the fastest earnings growth in 2015.

Haci Omer Sabanci Holding AS plans an IPO for Enerjisa Enerji AS, its energy production and distribution joint venture with Germany’s E.ON SE, Chief Executive Officer Zafer Kurtul said at a news conference in Istanbul on Tuesday. Kurtul didn’t give any timing for an IPO or identify units that could hold shares sales.

Avivasa Emeklilik & Hayat AS, a pension provider and life insurer owned by Sabanci and Aviva Plc, in November sold a 19.7 percent stake in the biggest IPO in Turkey last year, raising $147 million. Sabanci’s biggest asset is Akbank TAS, the country’s second-largest lender by market value, in which Citigroup Inc. owns about 10 percent.

The group is targeting sales growth of 10 percent at its units this year from the 44.2 billion liras ($17.5 billion) recorded in 2014, when sales increased by 23 percent, Kurtul said. Its businesses plan a combined investment of 3.5 billion liras this year, up from about three billion liras in 2014, he said.

Enerjisa targets an increase of as much as 30 percent in earnings before interest, tax, depreciation and amortization this year, after posting an increase of 80 percent in 2014 after the acquisition of two grids, he said. The advance in Enerjisa’s Ebitda will be the fastest among Sabanci’s business segments, which include tire-making, cement, food and electronic retail, Kurtul said.

Sabanci climbed as much as 2.6 percent to 9.82 liras, the highest intraday level since Feb. 12. Akbank rose as much as 1.3 percent to 8.32 liras.

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