Abu Dhabi’s IHC takes $490m stake in Turkey’s Kalyon

DUBAI, Aug. 11 (Reuters) – Abu Dhabi International Holding Company (IHC.AD) It said on Thursday it had acquired a 50 percent stake in Turkey’s Kalyon Enerji for 1.8 billion dirhams ($490 million) through one of its subsidiaries.

Kalyon Enerji is part of Turkey’s Kalyon Holding, which has interests in the construction, energy and aviation sectors. IHC said that IHC subsidiary International Energy Holding will acquire the stake.

In a statement to the Abu Dhabi stock market, IHC said the deal included solar projects in Turkey’s Karapınar and Gaziantep regions and a wind power project in Ankara.

Chief executive Syed Basar Shueb said the deal was IHC’s second-largest acquisition in the renewable energy sector.

Reuters reported in June that Kalyon Holdings, which owns a large number of solar and wind concessions in Turkey, was in advanced talks with IHC over a strategic asset partnership.

The Kalyon Karapınar solar power plant included in the deal, once completed in 2023, will be able to meet the annual electricity needs of 2 million people, IHC said.

The deal follows a visit by current United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan to Turkey last November, where he met with Turkish President Recep Tayyip Erdogan.

Emirati and Turkish officials signed multibillion-dollar investment deals, including energy, during the visit following years of animosity between the two countries.

The IHC is chaired by Sheikh Tanu bin Zayed, the UAE National Security Adviser and brother of Sheikh Mohammed.

(1 USD = 3.6727 UAE Dirham)

Writing by Alexander Cornwell; Editing by Robert Bursell

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