Russian Inter Rao entering Turkish power market, Uncategorized
According to RBC Daily, Inter RAO is considering acquiring the gas-fired Trakya Elektrik Uretim Ve Ticaret a.s. (Trakya Elektrik) power plant, which is located 100 km to the west of Istanbul in Turkey. The seller is international power company AEI Services Ltd. If the deal goes through, it is expected to be finished in August or September. Inter RAO has reportedly requested permission to acquire the asset from Turkey’s antimonopoly watchdog.
The pricing parameters are not known although RBC Daily reports that AEI Energy Holding acquired the asset for $400m. Since the value parameters have not been disclosed, it is impossible to evaluate the attractiveness of this deal for Inter RAO. We remind that recently Inter RAO’s management said that it had placed its international expansion on hold with the exception of Turkey, where the deal is already being negotiated. We look forward to seeing how the situation develops although at the moment we do not think the news will have any material impact on Inter RAO stock.