Fourth Week (19

9<
TABOGLU & DEMIRHAN
Newsletter
19 May 2014 – 25 May 2014
“ 21
Volume 13, Issue
PRIVATIZATION HIGLIGHTS


Highlights
a. Privatization
Higlights
b. Competiton News
c. Energy Market News
d. Capital Markets
Updates
e. Other News
cont’d.
As per the dailies, the final negotiations in
the tender held by the Privatization
Administration for the privatization of
hydroelectric power plants through the
transfer of operation rights for 49 years have
been completed. Accordingly, for the Isiklar
Hydroelectric Power Plant having a 0.3 MW
installed capacity, five companies had
submitted their bids and Metek Hidro Enerji
has become the winning bidder with its bid
amounting to US$ 1 million 850 thousand.
For the Ivriz Hydroelectric Power Plant
having a 0.6 MW installed capacity, six
companies had submitted their bids. Ulke
Yatirim Arastirma Gelistirme Madencilik has
become the winning bidder with its bid
amounting to US$ 2 million 300 thousand.
Finally, for the Kayakoy Hydroelectric
Power Plant having a 2.56 MW installed
capacity, 12 companies had submitted their
bids and Veysi Madencilik has become the
winning bidder with its bid amounting to
US$ 10 million 300 thousand.
The Competition Board has approved the
acquisition of a certain part of the shares
of Grup Florance Nightingale Hastaneleri
by Fiba Saglik Yatirimlari by establishing
a joint venture into Grup Florance
Nightingale Hastaneleri, on the ground
that it would not prevent competition.

According to the announcement released
on the web-site of the Competition Board,
3M Sanayi ve Ticaret will provide its
verbal defense on 23 June 2014 with
respect to the investigation held by the
Board in order to determine whether the
Company has breached the Law on the
Protection of Competition Numbered 4054
relating
to
agreements
restricting
competition.

As per the dailies, Ethem Sancak has
applied to the Competition Board for the
acquisition of 50% of the shares of each of
Star Medya Yayincilik, Star Medya Ajans,
Star Matbaacilik and Dinamik Radyo.
Ethem Sancak was previously a
shareholder in those companies.
As per the dailies, the tender for the
privatization of Kalamis-Fenerbahce Port
through transfer of operation rights for 49
years has been completed. Akin Holding –
Edip Gayrimenkul Consortium, Tepe – Kaya
Consortium, Tasyapi Insaat Taahhut Sanayi, 
Safi Gayrimenkul ve Yatirimlari Sanayi,
Akdeniz Insaat – Yilport Holding Consortium,
Tek-Art Kalamis ve Fenerbahce Marmara
Turizm Tesisleri and Dati Yatirim Holding
have participated in the tender. Accordingly,
Tek-Art, a subsidiary of Koc Holding, has won
the tender with its bid of US$ 664 million.
Currently, the Port is operated by Tek-Art.
COMPETITION NEWS


As per the dailies, the Competition Board has
granted its permission for the acquisition of
100% of the shares of BMC Ticari ve Iktisadi
Butunlugu, a military vehicle manufacturer, by
Es Mali Yatirim ve Danismanlik.
ENERGY MARKET NEWS
The decrees of the Council of Ministers
with regards to the urgent expropriation
for the construction of power plants and
natural gas distribution pipeline projects
have been published in the Official
Gazette dated 22 May 2014. Accordingly,
it has been decided that the immovable
properties within the scope of the
Calikobasi Hydro-Electric Power Plant
and the Yaylakoy Wind Power Plant will
be expropriated by the Ministry of
Finance.
In addition, the immovable
properties within the scope of the
Gemkopru Regulator and Hydroelectric
Power Plant and a natural gas distributing
pipeline to be constructed in Kayseri will
be expropriated by the Energy Market
Regulatory Authority.
cont’d.
cont’d
Page 2
cont’d.
OTHER NEWS

As per the decision of the Energy Market
Regulatory Authority published in the Official
Gazette dated 23 May 2014, the Authority has
imposed administrative fines on five legal
entities in the amount of TL 5 million 20
thousand 382 in total.

As per the statement made by Zorlu Enerji in
the Public Disclosure Platform, Israel based
Dorad Energy Limited in which Zorlu Energy
has 25% stake, has begun commercial
operations in its natural gas combined cycle
power plant with an installed capacity of 840
MW, which has been built in Ashkelon, Israel.

According to the announcement made by the
Constitutional Court, the Court has cancelled
several articles of the Electricity Market Law
granting period extension to EUAS, its
affiliates and subsidiaries for compliance with
the Environmental Law and providing a new
license to the premises, the constructions of
which have started. Accordingly, the
cancellation decision will come into force
within six months following the date on which
the decision is published in the Official
Gazette.

According to the 1,000 top exporters list of
Turkey announced by the Turkish
Exporters’ Assembly, Tupras has become
the last year’s export champion with US$
4 billion 135 million export value. Oyak
Renault and Ford Otosan followed Tupras
with their export values of US$ 3 billion
698 million and US$ 3 billion 523 million,
respectively.

As per the dailies, Aselsan, the Turkish
defense industry leader, has signed
framework agreements with French
aviation leader Airbus Group for future
collaboration on civil and military avionic
systems, satellite communication systems,
electro-optic and laser system, and secure
radio communications during the ILA air
show in Berlin. Additionally, Aselsan has
also signed another framework agreement
with aircraft engine manufacturer, Rolls
Royce, for evaluating the future
collaboration on motor control systems.

As per the dailies, Turyag Gida, a Turkish
fat and oil producer, has executed an
agreement with Cargill, a US based
company active in the agriculture and food
sector with a global turnover of US$ 134
billion, regarding the acquisition of the
shares of Turyag Gida by Cargill.
Accordingly, Cargill will invest over US$
100 million in Turyag Gida. Such amount
also includes the purchase price.

German truck manufacturer MAN will
close its bus factory in Plauen, Germany
and move the production to Ankara in
order to reduce its production costs as
employment costs in Turkey are
significantly low when compared to
Germany.
CAPITAL MARKETS UPDATES

The aim of this weekly
newsletter is to highlight
mainly the regulatory
changes made by the
Turkish
Government
during the relevant week.
The content of this bulletin
is limited to those areas
Taboglu & Demirhan
advises its clients.
It
contains
a
general
summary of the changes
and the areas it covers are
broader. Thus, one should
not rely on it for specific
advice.
For further
information or advice
please contact Taboglu &
Demirhan, a full-service
law firm based in Istanbul.
As per the statement made by Karsan
Otomotiv, a Turkish commercial vehicle
distributor, in the Public Disclosure Platform,
Karsan Pazarlama, a subsidiary of the
Company, has signed a distributorship
agreement with Hyundai Motor Co.
According to the distributorship agreement,
Karsan Pazarlama will provide marketing,
sales and after sales services to Hyundai Motor
Co. for light commercial vehicles in the
domestic market.

TABOGLU & DEMIRHAN
Attorneys at Law
Levent Cad. No. 9
1. Levent, 34330, Istanbul, Turkey
E-MAIL: [email protected]
www.taboglu.av.tr
PHONE: (212) 339 8800
FAX: (212) 339 8899