Vangolu Elektrik Dagitim A.S.

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On March 15, 2013, Turkerler Holding A.S. offered the highest bid of USD 118 million to acquire 100% shares of Vangolu Elektrik Dagitim A.S. (VEDAS), a state-owned power distribution company that distributes electricity to 485,318 customers (over 2 million people) who live in Van, Biltlis, Hakkari and Mus provinces in Turkey. Turkerler signed a thirty year Transfer of Operating Rights (“TOR”) agreement 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 (Turkerler) attains the right to operate the distribution network together with the obligation to undertake all new necessary investments. According to this model, Turkerler is the sole owner of the shares of VEDAS 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 Turkerler 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). The four bidders for VEDAS were Limak Insaat Sanayi Ve Ticaret A.S., Genpa Telekomunikasyon ve Iletisim Hizmetleri San. ve Tic. A.S., Turkerler Construction Tourism Mining Energy Production Industry and Trade Co. Inc. and Is-Kaya Insaat Sanayi ve Ticaret Ltd. Turkerler took over VEDAS in 2013. http://www.turkerler.com/en/electricity-dist/vangolu-electricity-distribution/