Oil Report

Akenerji of Turkey to increase capital almost six-fold

ISTANBUL, Dec 28 (Reuters) - Akenerji AKENR.IS, a Turkish power producer part-owned by CEZ CEZPsp.PR, said on Monday it will increase its capital by 475 percent to 375.8 million lira ($568 million).

The Istanbul-based company’s current capital is 65.3 million lira, according to a filing with the stock exchange. The increase is included in Akenerji’s registered capital ceiling of 1.5 billion lira, it said.

Akenerji’s shares closed 2.1 percent lower at 14 lira, underperforming the main index’s 0.8 percent decline.

“The news should not be surprising, considering the deterioration in the net debt position due to the huge investment plans of the company,” analysts at Oyak Securities said in a note.

Akenerji plans to begin construction next year on a 900 megawatt natural-gas-fired power plant in southern Turkey.

Chief Executive Ahmet Umit Danisman told Reuters last week it may bid for the licence to build Turkey’s first nuclear power plant and may also seek to acquire state-run power plants slated for privatisation. (Reporting by Ayla Jean Yackley; Editing by Ruth Pitchford)