GDF Suez wins bid for Turkish gas distributor Izgaz

GDF Suez has won a bid for the privatization of Izgaz, a Turkish gas distribution and retail network owned by the city council of Izmit, which lies in the Kocaeli region 80 km east of Istanbul.

Aug. 19, 2008

By Doris Leblond
OGJ Correspondent

PARIS, Aug. 19 -- GDF Suez has won a bid for the privatization of Izmet Gaz Dagitim (Izgaz), a Turkish natural gas distribution and retail network owned by the city council of Izmit, which lies in the Kocaeli region 80 km east of Istanbul. Total acquisition cost was €367 million, of which €212 million is a debt being assumed.

Izgaz is Turkey's third largest gas distributor after Istanbul and Ankara distributors. GDF Suez will own 100% of the company when the deal is concluded and approval granted by Turkish energy regulator EDPK and the competition regulator.
GDF Suez will then sell 10% back to the Izmir city council.

Izgaz serves 200,000 customers and sells 1.7 billion cu m/year of gas.