Abu Dhabi's IHC buys 50% of Turkey's Kalyon Enerji for $490 million

International Holding Company (IHC) of the United Arab Emirates bought 50 percent of Turkey’s Kalyon Enerji for $490 million, underscoring that the two countries are well on their way to repairing fractured relations.

Kalyon Enerji is part of Kalyon Holding, owned by businessman Cemal Kalyoncu, who has close personal and business relations with Turkish President Recep Tayyip Erdoğan. The company focuses on the construction industry, including large scale public projects with guaranteed revenue streams.

The deal follows efforts by Erdoğan to repair ties with the UAE and to attract capital from the country to Turkey. Turkey and the UAE signed a $4.9 billion currency swap agreement in January to bolster the reserves of the Turkish central bank after a run on the lira. The UAE said it was seeking investment opportunities in the country following meetings between the two countries’ political leaders.

"This constitutes IHC's second-largest acquisition in the renewable energy sector to date,” said Syed Basar Shueb, IHC's chief executive officer, in a statement to the Abu Dhabi stock exchange. “This will complement our renewable energy portfolio, which we will continue to grow across different markets".

Kalyoncu, who is chairman of Kalyon Holding, said the deal was of great importance not only to the two countries but also the region.

"This strategic cooperation is of historical importance in terms of realising both potential projects in Turkey, and new markets and business fields in geographies, that we plan to enter in the world; it will make a great contribution to our geography as well as our country,” he said.

Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan visited Turkey in November as the two countries sought to repair relations fractured by differences over regional policy. Erdoğan made a reciprocal visit to the UAE in February.

IHC is run by Sheikh Tahnoon bin Zayed, the UAE's national security adviser and a brother of Sheikh Mohammed.

The deal includes solar power projects in Turkey's Karapınar and Gaziantep regions and a wind power project in Ankara.

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