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Sell-side advisory to Intergen in its divestment of 60% stake in 3.8GW power generation projects in Turkey

On 30 October 2003, InterGen, a global power generation company jointly owned by Shell and Bechtel, divested a 25 per cent. stake in the share capital of the Adapazari, Gebze and Izmir power projects in Turkey (the “Projects”) to the BTU Group. This follows the sale of a 9% stake to ENKA, a major Turkish industrial group, announced on 28 July 2003. The plants have a combined capacity of 3.8GW and together represent the largest independent power producer in Turkey. The Projects were developed and are operated by a joint venture between InterGen and ENKA. 

A competitive auction process has been undertaken. Enka had used its last right of refusal (on the back of the valuation achieved in the sale process with third-party buyers) to acquire Intergen’s equity stake.

InterGen pursued the sale as part of the group’s strategy of recycling capital and maintaining a balance international portfolio. The sale had been envisaged at the time of development of the plants and the project agreements were structured accordingly. The Directors of InterGen believe that divestment of the 34 per cent. stake in the Projects has crystallised the value of the projects at a time when key project risks have been eliminated and important value drivers proven, hence freeing up capital to fund equity investments in additional projects in InterGen’s development pipeline.