Abu Dhabi’s International Holding Co (IHC.AD) on Thursday said it had acquired a 50% stake in Turkey’s Kalyon Enerji for 1.8 billion dirham ($490 million) through one of its subsidiaries.
Kalyon Enerji is part of Turkey’s Kalyon Holding, which has interests in construction, energy and aviation. IHC subsidiary International Energy Holding will acquire the stake, IHC said.
The transaction includes solar power projects in Turkey’s Karapınar and Gaziantep regions and a wind power project in Ankara, IHC said in a statement to the Abu Dhabi stock market.
Chief Executive Syed Basar Shueb said the deal was IHC’s second-biggest acquisition ever in the renewable energy sector.
Reuters reported in June that Kalyon Holding, which has large solar and wind energy concessions in Turkey, was in advanced talks with IHC to partner on strategic assets.
The Kalyon Karapınar Solar Power Plant, which is included in the deal, will be capable of meeting annual electricity needs of 2 million people once it is completed in 2023, IHC said.
The deal follows a visit last November by the United Arab Emirates’ now-president, Sheikh Mohammed bin Zayed Al Nahyan, to Turkey where he met Turkish President Recep Tayyip Erdogan.
During the visit, which followed years of animosity between the two nations, Emirati and Turkish officials signed billions of dollars in investment deals, including for energy.