Toroslar Elektrik Dagitim A.S.

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On March 15, 2013, Enerjisa Elektrik Dagitim offered the highest bid of USD 1.725 billion to acquire 100% shares of Toroslar Elektrik Dagitim A S (Toroslar EDAS), a state-owned power distribution company that distributes electricity to over 7.7 million customers in Adana, Gaziantep, Hatay, Kilis, Mersin and Osmaniye provinces in Southern Turkey with approximately 76,000 km long distribution grid. Enerjisa is joint venture equally owned by Turkey's Haci Omer Sabanci Holding A.S. and Germany's E.ON. Enerjisa 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 (Enerjisa) attains the right to operate the distribution network together with the obligation to undertake all new necessary investments. According to this model, Enerjisa is the sole owner of the shares of Toroslar 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 Enerjisa 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). Enerjisa took over Toroslar in October 2013 after it paid 40% of the bid amount or USD 690 million, in cash. The balance of 1.035 billion was to be paid in three equal installments in three years. http://www.enerjisa.com.tr/en-US/Corporate/OurCompanies/Pages/ToroslarElectricityDistributionCompany-.aspx