Recent development
On August 26, 2015, the Council of Ministers authorized
EUAS(Elektrik Üretim Anonim Şirketi,
EÜAŞ), the Turkish state-owned electricity
generation company, to establish an overseas entity
("EUAS HoldCo") to invest in electricity
generation and trade and waste management abroad.
EUAS HoldCo will be headquartered in Jersey, Channel Islands, with
initial capital of USD 50 million, which can be increased under
EUAS's investment and financing programs. EUAS HoldCo is
authorized to retain its dividends abroad, incorporate special
purpose vehicles, and invest in companies abroad, subject to
approval by EUAS's board and the Ministry of Energy and Natural
Resources.
EUAS HoldCo's directors will include one representative from
(i) the Undersecretariat of the Treasury, (ii) the Ministry of
Development, and (iii) the Ministry of Energy and Natural
Resources.
Conclusion
Despite Turkey's substantial privatization policy of the last decade, which led to the sale of the majority of EUAS's portfolio, EUAS is still the leading electricity generation company in the Turkish market, with a total installed capacity of approximately 13,000 MW providing 28.1% of the electricity in the Turkish market at the end of 2014. According to its own 2014 Sector Report, EUAS ranks eighth among the national electricity generation companies in the EU.
Following the lead of companies like RWE, GDF Suez, E.ON and Verbund, EUAS looks to enter the international electricity market, and expand its portfolio. This strategy includes building power plants abroad and participating in the privatization of power plants and distribution utilities. EUAS HoldCo could play a pivotal role in achieving Turkey's ambitions as a geographically strategic energy hub by investing in neighboring countries.
Please contact us if you have questions about how these changes might affect your company.
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