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					HACI OMER SABANCI HOLDING A.S. -
OSTERREICHISCHE
ELEKTRIZITATSWIRTSCHAFTS-
AKTIENGESELLSCHAFT (VERBUND)-ENERJISA
ENERJI URETİM A.S. JVG MAKES THE
HIGHEST BID FOR PRIVATISATION TENDER
OF BASKENT EDAS


The auction round of the final negotiations in the power distribution privatisation
process, for the block sale of the Baskent Elektrik Dagitim A.S. (Baskent
Electricity Distribution Corporation; Baskent EDAS) ended with the Joint Venture
Group of Haci Omer Sabanci Holding A.S., Osterreichische
Elektrizitatswirtschafts-Aktiengesellschaft (Verbund) and Enerjisa Enerji Uretim
A.S. offering the highest bid at $ 1.225 billion.

The auction round of the bidding conducted by the commission chaired by Ahmet
Aksu, Vice President of the Privatisation Administration (OIB) at the Privatisation
Administration (OIB), the Joint Venture Group of Haci Omer Sabanci Holding
A.S., Osterreichische Elektrizitatswirtschafts-Aktiengesellschaft (Verbund) and
Enerjisa Enerji Uretim A.S. offered a bid of 1.225 billion US Dollars.

In this round Hema Endustri A.S. first asked for time, then, when the company’s
representative entered the hall, declared that they left the tender. Also the
representative of the Akcez Joint Venture Group, who had asked for time during
the first round, declared that they left the tender, too.

Mr. Aksu, Chairman of the Tender Commission, asked the Haci Omer Sabanci
Holding A.S., Osterreichische Elektrizitatswirtschafts-Aktiengesellschaft
(Verbund) and Enerjisa Enerji Uretim A.S. Joint Venture Group if they would
revise their bid or not, and the Group’s representative said that their final bid
was 1.225 billion US Dollars.

Hence the first privatization tender in power distribution has been technically
completed. Ahmet Aksu said that the Decision of the Tender Commission would
be sent to the Competition Board and the Energy Market Regulation Board for
their opinion, and following the reception of the opinions, the tender would be
submitted to the Higher Board of Privatisation for approval, following which the
company would be invited to sign the contract, and after the completion of
payments the shares would be transferred to the company.

At the end of the auction, Sabanci Holding Energy Group Head Selahattin
Hakman made an evaluation on behalf of the Joint Venture Group, and answered
the questions of the journalists.
Having stated that they went through a highly important tender, Hakman said
that they thought that above all one of the major requirements of the formation
of a free, competitive energy market in Turkey was started to be satisfied with
the power distribution privatisations.

Emphasising that the creation of a free competitive energy market in Turkey
would play a significant role in solution of the supply problem which is currently
faced by the country, and to be overcome with great effort in years to come as
well, Hakman noted the following:

“Supply shortage in Turkey will only be overcome through investments to be
made by the private sector under competitive and liberal market conditions. This
was a major step towards liberalisation of the market, an towards the opening of
the competitive market, a step for which we had been waiting for long years. We
feel extremely happy that the power distribution zones were set for privatisation,
and such process has already started.”

Hakman stated that they as the Sabanci Group had for more than 3 years the
goal of becoming a major player in the competitive power market, and the
pioneers and leaders thereof, and added that they had further manifested such
target with Verbund, with whom they had been partnering for more than 1 year.

Hakman said: “We think that we could demonstrate today our commitment to
becoming a vertical integrated leader of this market in generation of power as
well as its distribution, trade, wholesale, and retailing, all in a vertical integrated
structure.”

-SERVICE QUALITY AND REDUCED LOSS/ILLEGAL ABSTRACTION OF
ENERGY ARE THE TARGETS-

On the question of a journalist about the investment and payment method,
Hakman pointed out that there was no structure they were planning but for the
investments provided for the Baskent Distribution, and added:

"We will look into the needs of the region more detailed after the takeover, but
our targets therein will be above all to increase the quality of our service to our
customers, and to reduce the rates of lost energy and illegal abstraction. And we
will start all the necessary investments in this respect as promptly as possible
after we take over the company. We have not made our decision on the method
of payment, we it is under evaluation, and we will use both alternatives.”

-INTEREST OF FOREIGN INVESTORS -

Upon a press member’s pointing out the low number of foreign companies
bidding for the tender, and asking whether the political tension in Turkey had
affected the tender and the price therein, Hakman stated primarily that they and
their partners believed in the liberal power market in Turkey, and the future
development and growth thereof.
Emphasising the fact that the energy was not a matter of investment to be
handled with a short-term approach, Hakman said that it rather deserved a long-
term one, and all the investors acted such.

Hakman added that he was therefore not of the opinion that certain short-time
ups and downs, turbulences had affected the participation there, and said
:”However, Turkey has somewhat retarded upon the deferment last year. New
investment opportunities has arisen in the world for international investments in
particular, for instance in Russia. Hence, the investors prefer certain markets.
This may have been a reason why more foreign investors are absent.”

-“THIS TENDER IS AN INDICATOR”

Underlining that the distribution privatisation tenders constituted one of the most
important indicators to show that a competitive liberal market would be well
established, Hakman noted that a growing confidence therein would be a
lodestar for the investors for both the investments in production, and for the
further distribution region privatisations.

Hakman stated that this would also bring about an ever growing interest from
the part of investors.

-“OUR PRICE IS NOT BEYOND THE ECONOMIC LOGIC "

Having been asked for his evaluation of the tender and the price bid thereat,
Hakman pointed out that they were resolutely progressing especially in the
electric power sector.

As for the price they bid, Hakman said: “We had also stated that we would also
not extend to points which are of no economic significance. At this tender we
have bid a price within the limits of logic, having strained every nerve, and all
our economic evaluations, without moving beyond the economic logic.”

As an answer to the question if they would participate in tenders for production
regions, Hakman said that they were planning a minimum market share of 10
percent until 2015 in general, they were progressing with projects they
developed themselves to exceed such target, and the production region
privatisations would be a part of their targets.

				
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posted:4/17/2010
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