Türkiye Petrol Rafinerileri : A strong move from Tüpraş towards its strategic transformation plan and 2050 carbon neutrality target

15 August 2022

Acquiring the shares of Entek, the electricity production company of Koç Group, Tüpraş moves towards its target to grow further in zero carbon electricity production

Tüpraş, which is the pioneer of energy in Turkey since its foundation and which has announced last year its strategic transformation plan and its commitment to be carbon neutral by 2050, has taken a new step in this journey. The company made a significant investment for 'Zero carbon electricity', one of the four strategic lines of business that the company will focus in future as a part of its plan. Tüpraş's acquisition of the shares of Entek, a renewable energy company as well as an affiliate of Koç Holding and Aygaz, has been approved in the general assemblies of the relevant companies following the approval of the procedures that started in April by relevant official authorities.

Yağız Eyüboğlu, Energy Group President of Koç Holding, stated that takeover of the shares of Entek by Tüpraş is a strong move of Koç Group for its strategy to grow in sustainable and renewable energy resources and said, "The transfer of the shares of Entek to Tüpraş will strongly contribute to its production portfolio throughout its strategic transformation journey and will also bolster our country's clean energy future."

İbrahim Yelmenoğlu, General Manager of Tüpraş, said, "We continue to lay the foundations of a pioneer and leader Tüpraş in the energy of future. Following the announcement of our strategic transformation plan, we have now taken the first big step towards our targets with Entek".

Tüpraş, the pioneer and leader of energy in Turkey since its foundation, has taken a new step towards the commitments in its strategic transformation plan.
The process of transfer of shares of Entek Elektrik Üretim A.Ş. ("Entek"), an affiliate of Koç Holding A.Ş. and Aygaz A.Ş., to Tüpraş through partial demerger, which was initiated on 25 April 2022, was also approved in the general assemblies of the said companies after obtaining the approvals of relevant official authorities. This step has become an important milestone for the objectives of Tüpraş - transforming into the energy company of future with the investments to be made in the new areas that support its sustainability approach - which is already included in the company's Strategic Transformation Plan.

It was stated after Extraordinary General Assembly meetings of Koç Holding, Aygaz and Tüpraş, which were held on 25 August 2022, that the shares of Entek with a nominal value of TRY 942,727,458.04, corresponding to 99.24% of the capital of Entek, were acquired.

Yağız Eyüboğlu: "This merger will also bolster the clean energy future of our country."
Yağız Eyüboğlu, Energy Group President of Koç Holding, stated that Tüpraş's takeover of the shares of Entek, a Koç Group company operating in the field of sustainable energy, is a very important move of the Group towards its strategy to grow in sustainable and renewable energy resources and they have created a strong synergy with this merger. Eyüboğlu added: "As part of Carbon Transformation Program of Koç Holding, we had taken a step in April for repositioning of Entek in parallel with the strategic targets of our companies that operate in the energy industry. As a result of the evaluations we made, it was decided that the shares of Entek, one of the companies of Koç Group, should be taken over by Tüpraş, which has announced its Strategic Transformation Plan with the objective of reaching carbon neutral by 2050, as well as due to the conformity of growth targets of Tüpraş with current portfolio and growth targets of Entek. The procedure of transferring the shares of Entek to Tüpraş through partial demerger, which was initiated for such purpose, has now been approved by general assemblies of the relevant companies as of today. The strong contribution of this structuring to production portfolio of Tüpraş throughout its strategic transformation journey would also bolster the clean energy future of our country."

İbrahim Yelmenoğlu: "Following the announcement of our strategic transformation plan, we have now taken the first big step towards our targets with Entek."
Reminding that they have completed their applications to official authorities for acquisition of Entek in April as a part of Strategic Transformation Plan of Tüpraş, İbrahim Yelmenoğlu, General Manager of Tüpraş, stated that this transaction was approved in the Extraordinary General Assembly meeting held on August 25, 2022 and added,

"Our two important areas of investment as a part of our Strategic Transformation Plan is zero carbon electricity production and producing the green hydrogen by using that electricity. We have now taken another important step towards our objective and we have taken over the shares of Entek, which has a total capacity of 442 MW, composed of eight hydroelectricity, one wind and one natural gas conversion power plants. After the completion of procedures for acquisition of Entek shares through partial demerger, we have made a significant move in achieving our target to have 1 GW installed power by 2030 and 2.5 GW installed power by 2035 and we continue to move forward.

Yelmenoğlu said, "Incorporation of the experience and expertise of the highly qualified human resources of Entek to the family of Tüpraş would create a great synergy in realizing not only our objective to produce zero carbon electricity, but also in implementing our strategic transformation plan. We consider the acquisition of Entek as an important milestone to support our production of zero carbon electricity and green hydrogen and we are now proceeding stronger towards our future objectives."

About Tüpraş: Having 30 million tons of annual crude oil processing capacity in its four refineries, Tüpraş is not only the largest industrial corporation and the first producer of Turkey in refining industry, but also the seventh largest refinery company of Europe and one of the most complex refineries in Mediterranean basin. The company, which announced its Carbon Neutrality target by 2050 and its Strategic Transformation Plan in 2021, is focusing on four lines of business, namely 'sustainable refining, zero carbon electricity, green hydrogen and biofuels', and aiming to lead the energy of future and the clean energy transformation of Turkey. For more information about Strategic Transformation Plan of Tüpraş:Strategy - Tüpraş (tupras.com.tr)

About Entek: Entek, which operates in the field of production of electricity from renewable resources, has a wind park in Süloğlu Plant, Edirne, with an installed capacity of 60 MW and 8 hydroelectricity power plants with a total installed capacity of 264 MW in various regions of our country. In addition to its renewable power plants, the company has a natural gas conversion plant with an installed capacity of 112 MW in Kocaeli. Total installed capacity of Entek in renewable energy is 324 MW and its total installed capacity is 442 MW.

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