Iskaya-MMEKA Wins Istanbul Electricity Grid Auction With $2.99 Billion Bid

A venture between Turkish companies Iskaya Insaat and MMEKA made the highest bid of $2.99 billion in an auction for Turkey’s biggest power grid, on Istanbul’s European side.

Iskaya-MMEKA will own and operate the grid, which has 3.8 billion subscribers, until 2036, Ahmet Aksu, head of Turkey’s asset sale agency, told the televised auction meeting at the agency’s head office in Ankara today.

Turkey is selling 20 regional electricity distribution networks to boost investment in the industry. The government aims to raise 10.4 billion liras ($6.9 billion) this year by selling state assets that also include rights to operate roads, bridges and the national lottery.

The government has raised $2.7 billion since November by selling seven regional grids. Before today, the largest sale was the grid in the capital, Ankara, bought by Haci Omer Sabanci Holding AS and Austria’s Verbund AG for $1.23 billion.

Iskaya-MMEKA beat off nine rival bids from companies including Sabanci, Turkey’s second-biggest industrial group.

The agency will also auction off three more grids later today in the Izmir, Thrace and southeastern Diyarbakir regions later today.

To contact the reporter on this story: Ali Berat Meric in Ankara at americ@bloomberg.net; Ercan Ersoy in Istanbul eersoy@bloomberg.net.

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