<article>Malaysian national power producer <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Tenaga+Nasional+Bhd" target="_blank">Tenaga Nasional Bhd</a> (TNB) has proposed to acquire a 30 per cent stake in Turkish power company <a style="color: #000080;" href="http://www.gama.com.tr/tr/enerji" target="_blank">GAMA Enerji A.S.</a> for $243 million (MYR1.06 billion).</article>

Malaysian national power producer <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Tenaga+Nasional+Bhd" target="_blank">Tenaga Nasional Bhd</a> (TNB) has proposed to acquire a 30 per cent stake in Turkish power company <a style="color: #000080;" href="http://www.gama.com.tr/tr/enerji" target="_blank">GAMA Enerji A.S.</a> for $243 million (MYR1.06 billion).
The energy group has signed a conditional share sale agreement (SSA) and shareholders agreement with GAMA Holding A.S, <a style="color: #000080;" href="http://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/home" target="_blank">International Finance Corporation (IFC)</a> and GIF Holding I Cooperatief U.A. to purchase 289.49 million sale shares, or 30 per cent, in GAMA Enerji.
The group will also form a separate partnership with GAMA Holding, to jointly offer operations &amp; maintenance (O&amp;M) facilities services regionally.
The proposed acquisition will be made through a special purpose vehicle (SPV), which will be incorporated later, TNB said in an announcement on the local stock exchange and a press statement.
GAMA and TNB’s special purpose vehicle have agreed to introduce potential power generation projects that are similar to those carried out by the GAMA Enerji business to GAMA Enerji while they remain shareholders.
TNB’s equity investment in GAMA Enerji will result in a strategic partnership that will allow it to pursue regional expansion opportunities in terms of asset acquisitions, greenfield projects, portfolio optimisation and supply market entry, the statement read.
TNB will also form a separate partnership with GAMA Holding to jointly offer operations &amp; maintenance (O&amp;M) facilities services regionally.
“This will allow TNB to pursue untapped opportunities in the region’s O&amp;M sector as well as leverage on GAMA Holding’s regional leadership in engineering procurement and construction (EPC) services,” the company said.
GAMA Enerji is a power and water infrastructure development company which owns and operates a large and well-balanced portfolio of thermal, wind and hydro assets in Turkey, as well as a large water conveyance project in Jordan.
It currently has an 840 MW natural gas-fired plant and a 45 MW wind power plant under construction in Turkey, which will go live in the third and fourth quarter of 2016, respectively. By 2017, it is expected to have a gross installed capacity of 1,027MW in Turkey.
The company has also developed and operates a large water conveyance project in Jordan.
GAMA Enerji is 73 per cent controlled by GAMA Holding, one of the most reputable conglomerates in Turkey with businesses in construction, EPC contracting, concessions, trade and energy/ water investment.
IFC, a member of the World Bank Group that focuses on the private sector, has a 20.25 per cent stake in GAMA Enerji; while GIF, a fund managed by the IFC Asset Management Company, controls the remaining 6.75 per cent.
Upon completion of the proposed acquisition, GAMA Holding will have a 50.5 per cent stake in GAMA Enerji, followed by TNB with a 30 per cent stake, IFC with a 14.5 per cent stake and GIF with a 5 per cent stake.
TNB said the partnership will give the group two seats on GAMA Enerji’s board with extensive control rights, as well as the opportunity to place key senior TNB professionals, particularly in finance, operations and maintenance, in GAMA Enerji’s management.
It will also cement a strategic partnership with IFC and GIF, two renowned institutions with many years of experience in developing infrastructure projects in Turkey and the Middle East and North Africa (MENA) region.
TNB&#8217;s chairman, Leo Moggie, said the investment is an important step in TNB’s strategy to expand into international markets, where power demand is strong.
“It is in line with TNB’s five-year international expansion roadmap to secure new overseas generation capacity. TNB will bring significant engineering and technical expertise, not least in the areas of managing, operating and maintaining large scale power plants.
“This know-how will give the partnership between TNB, GAMA Holding, IFC and GIF, a real competitive edge that can maximise opportunities in Turkey and the region,” he said.
This will allow TNB to pursue untapped opportunities in the region’s O&amp;M sector, as well as leverage on GAMA Holding’s regional leadership in EPC services, it said.
The process of acquiring GAMA Enerji began in December 2014 and was completed after careful and detailed due diligence by TNB and its financial advisors, Unlu &amp; Co A.S and UBS AG.
The SSA was signed on December 11, 2015. The investment, which will be financed by a combination of internal funds and external debt, is subject to obtaining regulatory approvals from the Turkish Competition Board, Turkey’s Energy Market Regulatory Authority and relevant Malaysian regulatory authorities.
The proposed acquisition is expected to be completed by the first quarter of calendar year 2016.
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Malaysian national power producer Tenaga Nasional Bhd (TNB) has proposed to acquire a 30% in Turkish power company GAMA Enerji for $243m

Malaysia's TNB to buy 30% stake in Turkish energy co GAMA Enerji

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