Dicle Electricity Distribution Company (Dicle EDAS)

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On March 15, 2013, Iskaya Dogu Hatti Enerji Yatirim joint venture offered the highest bid of USD 387 million to acquire 100% shares of Dicle Elektrik Dagitim A.S. (Dicle EDAS), a state-owned power distribution company that distributes electricity to Turkey's south-eastern provinces of Diyarbakir, Sanliurfa, Siirt, Mardin, Batman and Sirnak. Iskaya -Dogu Hatti Enerji Yatirim joint venture subsequently formed Dicle Enerji Yatirim A.S. (Dicle Enerji), which in turn acquired Dicle EDAS. Dicle Energi signed a thirty year Transfer of Operating Rights (“TOR”) agreement in August 2013 that was backed by Share Sale model ("TSS model"). Under the TSS model, asset ownership of new as well as existing distribution assets belong to the state-owned power distribution company Turkiye Elektrik Dagitim Anonim Sirketi (TEDAS), while the investor (Dicle Energi) attains the right to operate the distribution network together with the obligation to undertake all new necessary investments. According to this model, Dicle Energi is the sole owner of the shares of Dicle EDAS and has the sole license (monopoly) for the distribution of electricity in the designated region from Energy Market Regulatory Authority (EMRA). All EMRA approved investments shall be realized by Dicle Energi and will be recovered through the tariffs. Except for cases of investor misconduct, the part of investments not recovered via the tariffs shall be paid by TEDAS to the private operator upon the expiry or termination of the contract. The competitive tender was conducted by turkish privatization administration, Ozellestirme Idaresi Baskanligi (OIB). There were five other bidders - Limak Construction company, Fina Energy-Fina Porting OGG, Calik Energy company, Mes company-Iskur company OGG, and Fernas Construction company. Dicle Energi took over Dicle EDAS in August 2013. The acquisition was financed by Kuveyt Turk together with three other Turkish banks: Albaraka Turk, Halkbank and Ziraat Bankasi. http://www.iskaya.com.tr/EN/index.html The acquisition was financed by Kuveyt Turk together with three other Turkish banks: Albaraka Turk, Halkbank and Ziraat Bankasi.