8/18/2008

GDF wins tender for Turkey's Izgaz

Reuters - Gaz de France submitted on Thursday a winning bid of $232 million in the tender for the privatisation of Turkey's Izmit Gas Distribution company (Izgaz). Under the tender, the whole of the gas distribution firm in northwestern Turkey will be sold off in a block sale. "GDF Suez will own 90 percent of Izgaz capital at the end of the deal," GDF said in a statement confirming that it had won the tender. In the open auction session broadcast live by CNBC-e, local Zorlu Enerji withdrew from the tender. Energy regulator EPDK and the competition board must approve the tender before the distribution network is taken over by the private sector. Izgaz has $317 million in debt, and the winning bidder will also take on that debt. Gaz de France is one of a few foreign firms that have competed in Turkey's privatization tenders this year, stalling somewhat due to a global credit crunch and domestic political uncertainties.