240 Million Euro Sale Finalized Between Ağaoğlu And Doğan Enerji

A part of Doğan Group of Companies, Doğan Enerji acquired Akdeniz Elektrik Üretim A.Ş. and Galata Wind Enerji Ltd. Şti, both subsidiaries of Ağaoğlu Group of Companies, for a total sum of 240 million Euros. Handover of the facilities to Doğan Group has been finalized.

Doğan Group of Companies purchased 100% of the shares of Mersin Wind Energy Plant, a subsidiary of Akdeniz Elektrik Üretim A.Ş. with an installed capacity of 33MW, and Şah Wind Energy Plant, located in Bandırma, and a subsidiary of Galata Wind Energy Limited Şirketi, with an installed capacity of 93MW, both a part of the Ağaoğlu Group of Companies. 

This purchase reflects Doğan Group’s desire to grow within the renewable power sector. Additionally, the plants where capacity increase is currently underway by 9MW in Mersin and 12MW in Bandırma, respectively, are expected to reach a total capacity of 147 MW, with an approximate annual production of 530 million kWh. 

Having set a goal of becoming a major player in the energy business with this 240 million Euro investment, Doğan Group of Companies Chairwoman Begümhan Doğan Faralyalı said, “Given Turkey’s exponentially growing need, renewable energy is an area Doğan Group cannot ignore. Wind power, aside from the fact that it is renewable and clean, will have a very positive impact on the stability of the economy, as well as on growth in Turkey, since it will lead to a reduction of imported energy, the leading cause of the budget deficit. This large-scale investment -- namely, the purchase of Akdeniz Power and Galata Wind Power Companies, which were brought to their current level by the Ağaoğlu Group of Companies -- will certainly not be our final investment in this area. Turkey’s future, in terms of energy, lies in the renewable and clean energy sector. This is the reason why we are in this sector, and why we plan to grow within it.”   

Speaking about the purchase, Doğan Group of Companies Chief Executive Officer Yahya Üzdiyen stated that the energy sector, which constitutes the engine of the economy, is in fact among the main business lines of the Doğan Group. Üzdiyen said, “The fact that the expansion investments for Akdeniz Power and Galata Wind Energy, both established through Ağaoğlu Group’s initiative, shall be producing an additional 21 MW of power, when you consider that the total installed power was just 18 MW back in 2004 and that the combined total installed power of these companies exceeds the total installed capacity of Turkey in 2004 by a staggering eight-fold, is an indication of the fast pace of energy growth in our country. Being a part of such speedy development is exciting for Doğan Group of Companies. Among the strategic growth areas of Doğan Holding is the energy sector, with clean and renewable energy at the top of the list. This purchase constitutes a major component of our energy sector strategy.  Doğan Energy shall also continue with its efforts to capitalize on opportunities in oil and power distribution, in addition to its current investments.” 

Commenting on the agreement, Ağaoğlu Group of Companies CEO Ali Ağaoğlu said they are continuing with work on developing renewable energy investment projects with a total capacity of 1084 MW, spread across the remaining 17 companies within the group, after the sale of the two RES plants.  

Ağaoğlu also said that any added value to be obtained in the energy area is vitally important to the Turkish economy in its quest to reduce its current budget deficit. Emphasizing the fact that he is very happy with the accord reached with Doğan Energy, Ağaoğlu said, “We have established these two wind plants from scratch, whose sale we have finalized at this time, and developed them in a very short time. We have not been content to just commence production in these plants; instead, we chose to increase their respective capacities and develop them into world-class investments in terms of productivity. We are utilizing and implementing our speedy project development and organizational experience in energy as well. Doğan Group is among the most significant groups of companies investing in energy in Turkey. I certainly believe they will further both investments to much higher levels, and hope this endeavor shall prove fortuitous for our country.” 

Ağaoğlu will be using the proceeds from the sale of these two plants for new energy investments. Ağaoğlu Group of Companies currently holds a license for 1084 MW, not counting the two plants that were sold. Of the 1084 MW, RES plants constitute 469 MW, with HEPP plants at 310 MW and Thermal Power Plants making up the remaining 305 MW. Stating that he shall use the proceeds in the amount of 1.3 billion Euros from the Dogan Group sale to seed his continuing investments, Ağaoğlu said they will complete the building of the wind plants in as little as six months by applying the group’s speedy production experience in the field of energy-related construction.    

Doğan Enerji, a subsidiary of Doğan Holding, holds a 33% share in the Boyabat Dam and Hydroelectric Power Plant, with an installed capacity of 513 MW. When completed, this project will produce 1.5 billion kWh of power annually. Additionally, Doğan Group of Companies and Doğan Energy hold a 33% share in the Aslancık Project, with 120 MW installed capacity. This facility should be completed by the second half of 2013. Carrying on with oil and natural gas exploration efforts as well, Doğan Enerji holds a 50% interest in Gas Plus, a partnership the group entered in 2009 in Northern Iraq.

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