Turkey’s Sabanci Sees Acquisitions, Sales in Policy Overhaul

29 Jun 2020, 11:53 AM IST

(Bloomberg) -- Turkey’s second-largest conglomerate has a pipeline of acquisitions for some of its industrial businesses as part of a new five-year strategy to cope in a post-coronavirus world.

Haci Omer Sabanci Holding AS also plans to sell shares in an energy venture through an initial public offering, and exit some of its non-core businesses, possibly in retail, Cenk Alper, the chief executive officer of the Istanbul-based company, said on a video conference on Thursday.

Details of the strategy will be announced in August or September. Sabanci owns Akbank TAS, the nation’s second-largest lender by market value.

“We will continue growing organically in finance, energy, building materials and industrial manufacturing,” Alper said, adding that the company must also reconsider its supply chains. “We should not keep all eggs in the basket of China for a healthy supply chain management. We should consider new supply centers, including manufacturing in Turkey and in our region in the post-Covid-19 era.”

Here are some of the company’s plans for its divisions:

An IPO of Enerjisa Enerji Uretim AS, a joint venture with Germany’s E.ON SE, as soon as the company is able to pay dividends after refinancing its project-finance loans. Acquisitions in new wind power capacity are possible to grow the renewable segment.
Acquisitions in Europe within the next three years for Kordsa Teknik Tekstil AS, its industrial reinforcement fibers maker, after the company completed a slew of buyouts in the Americas in recent years.
- Technology at Kordsa’s units in the Americas will be transferred to the acquired company in Europe
Cimsa Cimento Sanayi ve Ticaret AS, one of two cement makers in the group, may also boost acquisitions after it completes the $180 million purchase of the Bunol plant from Cemex SAB of Spain.
- “Our aim is to make Cimsa the world leader in white-cement making,” Alper said.
Sabanci’s newly founded venture capital firm will make some startup investments this year.
IPOs are being considered in other units of Sabanci after they grow to a certain size.
Temsa, a bus-making joint venture with Skoda Transportation, will hold debt-restructuring talks with lenders including Akbank after getting antitrust approval.
Although not a priority, a reorganization at cement-making units Cimsa and Akcansa, in which HeidelbergCement AG has a stake, is possible.
Sabanci holds 2 billion liras ($292 million) of net cash, and doesn’t have a problem with managing currency fluctuations

Sabanci rose as much as 1.6%, the most since June 19, giving the company a market value of 18.5 billion liras. Kordsa fell as much as 1.3% and Cimsa fell 2%.