Karamehmet-Kazancı to control İstanbul’s electricity distribution
MMEKA A.Ş. has submitted the highest bid — $1.81 billion – for the privatization of İstanbul Anadolu Electricity Distribution, owned by the Turkish Electricity Distribution Company (TEDAŞ).
Turkish Privatization Administration (ÖİB) Deputy Chairman Ahmet Aksu oversaw the tender, in which offers from the participating companies were submitted in sealed envelopes in the first session, where the highest bid was $600 million.
In the first round of the second session the highest bid was $1.21 billion, and Palmet Energy was eliminated. In the second round, where the highest bid was $1.41 billion, Alsim Alarko dropped out. The highest bid in the third round was $1.57 billion, and the partnership formed by IC Construction and Eren Holding was knocked out of the running. In the fourth round Türkerler was eliminated, and the highest bid came in at $1.69 billion. After the fifth round the tender was changed into an auction.
The starting amount was determined as $1.81 billion in the auction, and the companies were asked to increase their bid in increments of $1 million. Companies Aksa Electric, Enerjisa, Park Holding and the partnership formed by Cengiz-Kolin-Limgaz withdrew from the auction, and Yıldızlar Holding placed the highest bid — $1.812 billion – in the first round of the auction session. In the second round the winning company was MMEKA with a bid of $1.813 billion to become the owner of İstanbul Anadolu Electricity Distribution.
If the tender is approved by the Turkish energy authorities, the partnership between Mehmet Emin Karamehmet and Mehmet Kazancı will control the electricity distribution of both the Anatolian and European sides of İstanbul. “This tender is crucial for us in terms of the optimization of İstanbul’s electricity. It will be easier to control both sides of İstanbul,” said Kazancı, the chairman of MMEKA.
The Karamehmet-Kazancı partnership has submitted the four highest bids for the electricity distribution of four different regions – Bogaziçi Electric Distribution ($2.99 billion), Başkent Electricity Distribution ($1.211 billion), Gediz Electricity Distribution ($1.920 billion) and İstanbul Anadolu Electricity Distribution ($1.813 billion). The total value of their bids has neared $8 billion.
Separately, Energy and Natural Resources Minister Taner Yıldız said TEDAŞ will maintain its corporate structure even after the privatization.
Yıldız received Bulgarian Ambassador to Turkey Krasimir Tulenchki on Tuesday. After the meeting, Yıldız gave a statement about the meeting with the Bulgarian ambassador and commented on the tender of the TEDAŞ companies.
Yıldız said that TEDAŞ salaries were decreasing and that many of its employees had moved to companies in the private sector. “TEDAŞ will preserve its corporate structure since the ÖİB has given some responsibilities to TEDAŞ. Electricity distribution companies will be monitored by TEDAŞ while TEDAŞ will also control the performance of the electricity distribution companies jointly with the Energy Market Regulatory Agency [EPDK]. These responsibilities of TEDAŞ will continue,” said the Turkish energy minister.
Moreover, the tenders of Toroslar Electricity Distribution and Akdeniz Electricity Distribution are still in progress.
MMEKA A.Ş. was the winning company with a bid of $1.813 billion in the second round of the tender to privatize İstanbul Anadolu Electricity Distribution, part of TEDAŞ. If the tender is approved by the Turkish energy authorities, the partnership between Mehmet Emin Karamehmet and Mehmet Kazancı will control the electricity distribution of both sides of İstanbul.
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