Turkish conglomerate Sabancı prioritizes pulling up of low share value: CEO
ISTANBUL
Speaking at a press conference in Istanbul on May 23, Sabancı Holding CEO Mehmet Göçmen said the company would apply a new management model by this summer.
“The priority through this model will be to raise the company’s share value up to what it deserves,” Göçmen said.
Sabancı shares were at 10.98 Turkish Liras on the afternoon of May 23, with a 2.52 percent increase compared to the previous closing.
“We have been examining new business models in each of our businesses,” said Göçmen, adding that the new era of the company would be based on “new technologies.”
Sabancı Holding currently employs around 63,000 people across several sectors, including banking, energy and retail. It has announced a 4.5 billion lira investment target for this year.
Göçmen, who was appointed to his position on March 30, also noted that an additional 500-700 million lira investment would be made, mainly in the energy sector.
The company expects double-digit growth in revenue and approximately 15 percent growth in EBITDA in 2017, he added.
Saying they plan to bid in the wind power tenders, Göçmen said they are prioritizing their search for foreign investment with Çimsa, the company’s cement manufacturer unit.
In response to a question about whether Sabancı Holding has any problems with the investment appetite of their foreign partners amid uncertainties following the July 2016 coup attempt in Turkey, Göçmen denied facing any problems in this area.
Sabancı posted net profits of 669.4 million liras in the first quarter of the year, a 4.5 percent year-on-year increase, with a strong contribution from its lender Akbank.
Meanwhile, Sabancı and E.ON have struck an agreement to restructure their energy company Enerjisa and its subsidiaries, Sabancı said in a statement on March 24.
Each company has a 50 percent stake in the energy company.
The deal arranges the group’s electricity distribution and retail companies under a parent company, while energy generation, energy wholesale and natural gas wholesale companies are placed under another parent company.
“With this new strategic structuring in Enerjisa, the aim is to create two stronger, high potential companies,” read the statement.