Chance Games tender to be given to second successful bidder

Net Holding Inc., the winner of the tender for the privatization of chance games through licensing, announced yesterday the license agreement will not be signed as a part of the tender, whereupon Finance Minister Mehmet Şimşek said the process might be continued with the tender's runner-up.

Net Holding Inc. announced the license agreement would not be signed on Wednesday as part of the tender. The Privatization Administration had granted the company an extension until April 15 to sign the license agreement, which is required to operate Milli Piyango's (National Lottery) game of chance. The company released a statement on the matter via the Public Disclosure Platform (KAP) that read: "As is known and as noted in our special situation disclosure that was shared with public on March 10, 2015, the Privatization Administration approved the requested extension until April 15, 2015, for us to sign the license agreement as part of the tender for the privatization of chance games through licensing. However, it seems that the relevant license agreement cannot be signed on April 15, 2015. We declare to the public that as soon as we are informed of the new signing date, we will share it with our investors. The relevant process is ongoing and developments will be announced to the public."

Commenting on the matter, Şimşek said that the company will probably not be given another extension, and that the process will likely be continued with the company that came in second in the tender. During the tender that was held to privatize the games of chance belonging to Milli Piyango on July 15, 2014, the consortium of Net Şans and Hitay OGG offered the highest bid of $2.755 billion plus value added tax. The Privatization Administration summoned the joint venture group to sign the license agreement on Feb. 26, 2015. At the request of Net Şans-Hitay OGG, the prescribed time was extended until April 15. The Privatization High Council adjudicated that in case of the failure of the group to fulfill the obligations, the license of chance games would be given to the consortium of ERG-Ahlatcı - which offered the second highest bid of $2.750 billion plus VAT - and that the tender would be annulled if this group also failed to fulfill the obligations.