Uludag Eletrik Dagitim A.S.

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In January 2010, a consortium led by Limak Holding [Turkey] won the rights to operate the concession Uludag Elektrik Dagitim or UEDAS from the Turkish Privatization Administration (Ozellestirme Idaresi Baskanligi or OIB). Uludag Elektrik Dagitim was granted a 30 year electricity distribution concession in 2006 to which served an area of 35,501 km2 area in the South Marmara Region (provinces of Bursa, Balikesir, Çanakkale, Yalova). The company had 2.278 million customers, including which 1.876 million residential customers by December 2008. Limak Holding in consortium with Cegniz Holdings and Kolin Construction won the tender for the block sale of 100% of UEDAS concession organized by OIB. Limak Holding owned 33.31% of UEDAS while the remaining was equally split between Cegniz Holdings and Kolin Construction. OIB prequalified 16 investors in December 2009 of which nine submit final bids in January. Limak Holding won the tender by offering the highest price for the concession (US$940 million). The Higher Privatization Council gave the final approval to the transaction in August 2010. The project reached contractual closure on August 31, 2010 with the signature of sale and transfer agreements by the winning consortium and the Turkish government. The private consortium that won the project has the right to operate the distribution company for the remaining of its concession period until 2036. This concession was part of a government program to introduce private operation of, and investment in, the 20 regional electricity distribution companies owned by the state-owned Turkiye Elektrik Dagitim A.S. (TEDAS). The program followed a Transfer of Operating Rights and Share Sale model ('TSS model'). In this model, the private investor became the sole owner of the distribution companies' equity and the unique licensee for distributing electricity in each region for a period of 30 years. However, TEDAS retained ownership of the distribution network assets and of certain other items essential for operating the distribution assets. The private investor was obliged to undertake the necessary network investments, recoverable through the tariffs. These investments were embedded in the tariffs during the first tariff implementation period (2006-2010). After 2010, the private investor was to submit an investment plan annually to the Electricity Market Regulatory Authority (EPDK) for its approval.

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