Oldenburg/Baku/Istanbul, 30. January 2019. The energy companies EWE AG (Oldenburg) and SOCAR Turkey (Istanbul) signed an agreement for the sale and purchase of 100 per cent of EWE Turkey Holding. EWE thus successfully concludes the strategic review of its Turkish activities and withdraws completely from the Turkish energy and telecommunications market. With the acquisition of EWE Turkey Holding, SOCAR, the State Oil Company of the Republic of Azerbaijan, is expanding its existing involvement in Turkey.
The closing of the transaction is expected during the first half of 2019 and is subject to the approval of the Turkish Competition Board and the Turkish regulators for Energy Markets and Information Technologies. For the purchase price silence was agreed. Barclays acted as sole financial adviser to EWE AG.
EWE Turkey Holding, based in Istanbul, was founded in early 2007. It holds majority stakes in the regional gas distribution companies Bursagaz and Kayserigaz (each 80 per cent of the shares), the trading company EWE Enerji, the energy service provider Enervis Enerji Servis and the telecommunications company Millenicom (each 100 per cent).
SOCAR Turkey is a subsidiary of SOCAR- State Oil Company of Azerbaijan and is the largest foreign investor in Turkey, with 14.2 billion USD invested since 2008. SOCAR’s activities in Turkey include refining, petrochemicals, natural gas pipelines, CNG and LNG, storage, as well as the transport, delivery and sale of products in domestic and foreign markets. With the acquisition of EWE Turkey Holding, SOCAR Turkey will now be starting to sell gas to customers in Turkey, closing the chain of production, transport and distribution in the country.