Government Preparing to Inject Money for Re-sale of Gas Grid
Following a failure in privatization of Başket Doğalgaz, the natural gas distribution grid in the Turkish capital of Ankara, a new tender to sell the asset would be held in June or July after a consolidation in the company, said Finance Minister Mehmet Şimşek.
The government is preparing to spend more on the company before the re-sale.
He called on the Privatization Board to finalize the procedure by next year, Şimşek told the Anatolia news agency.
MEKA Makine, a joint venture between businessmen Mehmet Kazancı and Mehmet Emin Karamehmet, failed May 9 to make the $1.21 billion payment for the purchase of privatized Başkent Doğalgaz.
Noting that the whole process is reset after cancellation, the sale contract is also being revised, Şimşek said. The country’s energy market regulator is also involved in the process, he added.
The value of the company is also to be re-assessed with recent figures on the balance sheet. The figures will also be shared with investors online, the minister said.
Even during this beginning phase of the new bidding process, investors are showing a great interest in Başkent Doğalgaz, he said. “Başkent Doğalgaz is the oldest and second biggest natural gas grid company in Turkey. We again expect a great interest in the company.”
The Privatization Board will have separate talks with each foreign and domestic investor, including ones that did not enter the previous tender, the minister said.
A consolidation process will take place within the Başkent Doğalgaz as the government will support the company in terms of finance and manpower. Some capital will be allocated for the grid to pay some of its debts to BOTAŞ, the state gas supplier, Şimşek said.
According to data gathered by the Anatolia news agency, the government plans to inject some $100 million into the company.
MMEKA Makine also committed $4.8 billion to the privatization tender of two electricity distribution grids of Istanbul. If the duo cannot pay a total of $3 billion for the tenders of the Boğaziçi and Ayedaş grids by May 31, the rights will be granted to second or third bidders.
The Privatization Board will not act until the legal deadline is over for the electricity grids, said Şimşek.
May 23, 2011
SOURCE: HURRIYET DAILY NEWS
