Annual Turkish M&A Review 2010

Corporate Finance January 2011

Foreword

After a lifeless period for M&A in 2009, the M&A buzz of 2010 reminded all of the good old times. The deal volume of c. US$29 billion materialized through 203 deals, was an all-time high in terms of number of deals and the second highest deal volume after the year 2005, in Turkish M&A history. As foreseen in our predictions featured in last years review, privatizations and energy sector deals were critical in the deal value of 2010. Privatizations, which comprised half of the total deal value, as well as a few sizable energy and financial services deals in the private sector carried the M&A volume up to such a remarkable level. If it werent for these transactions, the deal volume under discussion would be around US$7 billion. Nevertheless, the vivacity of the markets signals a strong year in terms of M&A in 2011. We are delighted to share, in the following pages, our analyses and insights regarding the Turkish M&A market in 2010, as well as our expectations regarding 2011. I would also like to thank the Corporate Finance Team of Deloitte Turkey for their support in putting our annual Turkish M&A Review together.

Baak Vardar

Partner Corporate Finance

Energy privatizations make their mark

Following the quiet period in 2009, M&A activity in 2010 has soared to rea h the highest number of deals ever and the second highest deal value after the year 2005, in Turkish M&A history. Total M&A volume was around US$29 billion(1) through 203 deals, five times and two times the deal value and number of last year, respectively.
Privatizations, comprised half of the total deal value. The privatizations in the energy sector and a couple of sizable transactions in energy and financial services in the private sector were decisive in the deal volume. 2011 is expected to be a vibrant year in terms of M&A, once again featuring significant privatizations. Out of 203 transactions in 2010, 119 had a disclosed deal value, adding up to US$25.4 billion. Considering the estimated value of deals with undisclosed values, total M&A volume was around US$29 billion in 2010. (2009 full year c. US$5.8 billion). 2010 was a year of privatizations and secondary sales. Privatizations made up a considerable part of the deal volume, with 35 transactions having a deal value of US$14.6 billion, which represents half of the total deal value. These transactions were mainly the sale of electricity distribution companies and portfolios of small generation assets. 2010 was the last stop of a long-lasting journey for the privatization of the Turkish electricity distribution companies. Electricty distribution rights for 11 regions were sold off for a total of US$12.3 billion. Additionally, Bakent natural gas distribution company was privatized for US$1.2 billion. Spanish BBVAs acquisition of Garanti Bank shares from GE (25%) for a consideration of US$5.8 billion was certainly the deal of the year, which comprised 20% of the total deal value by itself. Excluding privatizations and the Garanti Bank deal, the total volume of the remainder was only US$8.5 billion, while the average deal size of the remainder was US$50 million, indicating that mid-cap segment hosted the most activity. The number of big-ticket transactions did not exceed the number of fingers on one hand. Even with a deal value of c. US$10.5 billion (2009 US$2.2 billion), foreign investors only accounted for 36% of the total deal value. Foreign investors contribution to the annual deal volume remained low in 2010 mainly due to Turkish investors dominant role in privatizations. We expect the energized M&A market to keep building up its momentum in 2011.

1. Including estimates for deals with undisclosed values

Snapshot

Year Deal Number* Deal Volume* Privatizations / Share in Total Foreign Investors* Financial Investors* Average Deal Size Largest Deal Value / Share in Total

2007
160 US$19.3 billion US$2.3 billion / 12% 70% of deal value 13% of deal value c. US$120 million US$2.7 bn (Oyak Bank) / 14%

2008
169 US$16.2 billion US$5.2 billion / 32% 85% of deal value 30% of deal value c. US$100 million US$3.1 bn (Migros Trk) / 19%

2009
102 US$5.8 billion US$1.8 billion / 32% 38% of deal value 12% of deal value c. US$55 million US$606 mn (Sugar Factories)** / 10%

2010
203 US$29 billion US$14.6 billion / 50% 36% of deal value 3% of deal value c. US$140 million*** US$5.8 bn (Garanti Bank) / 20%

(*) Including estimates for deals with undisclosed values and adjusted for canceled transactions. (**) The legal process regarding the sugar factories is on-going. No adjustments have been made. (***) Excluding privatizations and the Garanti Bank deal, the average deal size of the remainder was US$50 million.

Privatizations

Privatizations were the distinctive mark on the deal volume of 2010, with 35 transactions having a total value of US$14.6 billion. Historically, this year bore the deepest impact by privatizations on deal value. Privatizations have comprised 50% of the total deal value in 2010. Turkish groups once again stepped up during privatizations and submitted the winning bids in all of the 35 transactions. Foreign investors were absent during privatizations and Turkish investors, in contrast to prior years, carried on without taking on foreign partners.

Other than the privatization of the Iskenderun Port and the Grand Hyatt Hotel Istanbul, all privatizations were in the energy sector. The electricity distribution sector was totally restructured and privatized in 2010. Electricity distribution regions were sold off in big-ticket transactions ranging from US$100 million to US$3 billion. Sale of state-owned assets such as Galataport, National Lottery, Electricity Generation Assets, IDO (Istanbul Fast Ferries), IGDA, Bridges and Highways will keep privatizations again on the agenda in 2011. If all sale processes are successful, the privatization volume would reach US$12-15 billion in 2011.

35.0 35,0 31.0 31,0 30.0 30,0 25.0 25,0

(US$ billion)

60.0% 60,0% 49.6% 49,6% 29.0 29,0

50.3%50,0% 50,3% 50.0%

40.0% 40,0% 19.0 19,0 15.4 15,4 19.3 19,3

16,2 16.2

20.0 20,0 15.0 15,0 10.0 10,0 5.0 5,0 0.0 0,0
2005

31.9% 31,9%

32.0% 32,0% 14.6 14,6

30.0% 30,0% 20.0% 20,0%

12.0% 12,0% 2.6% 2,6%

0,5 0.5 2006

5.2 5,2

5.8 5,8 1.8 1,8

2.3 2,3
2007 2008

10,0% 21.0%

0.0% 0,0%
2009 2010 Privatizations Ratio to Total Deal Value

Total Deal Value

1. The figures above do not include SDIF sales, which were most prominent in 2005. 2. The legal process regarding the sugar factories privatization of 2009 is on-going. No adjustments have been made.

List of Privatizations 2010

#
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Acquirer
kaya naat San. & MMEKA Makine thalat Yldzlar SSS kaya naat San. & MMEKA Makine thalat MMEKA Makine thalat MMEKA Makine thalat Park Holding Limak Holding Aksa Elektrik Limak Holding Kolin naat Aksa Elektrik Karavil Dayankl Tketim Mallar & Ceylan naat Dou Holding Aksa Elektrik Frat Enerji retim Kayseri ve Civar Elektrik Aksu Enerji Nema Kimya-Espe Consortium Yiitler Enerji Nas Enerji Boydak Enerji elikler naat Erdem Consortium (Kipa Mensucat) Nema Kimya-Espe Consortium Kisan naat Kayseri ve Civar Elektrik Seba Consortium vme Elektromekanik Ka-Fnih Enerji Kent Solar Elektrik Demista Dou Elektrik Er-Bu naat Sarar Giyim Seba Consortium

Origin
Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey

Target
Boazii Elektrik Datm Toroslar Elektrik Datm Gediz Elektrik Datm stanbul Anadolu Yakas Elektrik Datm (AYEDA) Bakent Doalgaz Akdeniz Elektrik Datm Uluda Elektrik Datm Trakya Elektrik Datm skenderun Liman amlbel Elektrik Datm Frat Elektrik Datm Dicle Elektrik Datm Grand Hyatt Istanbul Vangl Elektrik Datm EA Portfolio 7 EA Portfolio 10 EA Portfolio 4 EA Portfolio 18 Aydn-Pamukren Jeotermal Sahas EA Portfolio 16 EA Portfolio 14 Aydn-Sultanhisar Jeotermal Sahas Aydn-Nazilli Jeotermal Sahas EA Portfolio 3 EA Portfolio 19 EA Portfolio 13 EA Portfolio 6 EA Portfolio 9 EA Portfolio 11 EA Portfolio 1 EA Portfolio 15 EA Portfolio 17 EA Portfolio 2 EA Portfolio 8

Sector
Energy Energy Energy Energy Energy Energy Energy Energy Infrastructure Energy Energy Energy Tourism Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy

Stake
100.0% 100.0% 100.0% 100.0% 80.0% 100.0% 100.0% 100.0% N/A 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% N/A 100.0% 100.0% N/A N/A 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Deal Value (US$ million)

2,990.0 2,075.0 1,920.0 1,813.0 1,211.0 1,165.0 940.0 622.0 372.0 258.5 230.3 228.0 136.8 100.1 86.4 69.7 56.1 50.1 48.8 40.8 29.1 25.6 20.5 17.4 14.7 13.8 13.5 7.6 7.0 6.6 6.6 6.4 5.8 5.7

35

Fides Reklam Enerji Total

Turkey

EA Portfolio 5

Energy

100.0%

2.8 14,596.5

Investor origin

While foreign investors interest towards Turkey has gradually increased over the past decade, Turkish investors have truly warmed up to M&A as well. Foreign investors generated a deal volume of c. US$10.5 billion (including estimates) through 73 deals. Foreign investors contribution to the total deal volume, which declined in 2009, was low again in 2010 with a level of 36%. The causes of this drop are twofold: Firstly, the global financial crisis hit EU member countries, who are historically the most active buyers in Turkey, relatively harder. Secondly, Turkish investors interest towards sizable privatizations was intense. Excluding privatizations, foreign investors share in the remaining deal volume was still above 70%, which signals a recovery in their interest in Turkey. Fervent Turkish investors materialized their new-found fondness of M&A in 2010. Against foreign investors 73 transactions in 2010, Turkish investors made 130 acquisitions worth c. US$18.4 billion, including estimates for deals with undisclosed values, US$14.6 billion of which came from privatizations.

45 deals by European investors amounted to a total value of US$9.2 billion (including estimates), thereby comprising 88% of foreign investors deal value. Investors from USA, who previously struggled with problems at home, seemed to be in better spirits and re-focused on investing overseas as they concluded the year with 13 deals. On the other hand, the Gulf region completed 9 transactions, half of which were financial investments into the healthcare, food & beverage and breeding sectors. BBVAs acquisiton of Garanti Bank was the largest deal by a foreign investor, as well as the largest of 2010. Additionally, there were foreign investors who increased their stakes in Turkish subsidiaries (6 deals), as well as a few who sold their stakes and left Turkey (only 3 deals).

Deal Number

Deal Number
Netherlands 5 Austria 4 Portugal 3

Turkish Investors Foreign Investors 130 73

UK 6 France 6 Germany 6

Other 31

USA 12

Deal Value (US$ million, Disclosed) Deal Value (Disclosed)

Austria 1,440 1.440 Czech Republic 406 Netherlands 314 Japan 286 USA 243 Germany 161

Turkish Investors Foreign Investors 16,072 16.072 9,365 9.365

Spain 5,838 5.838

Other 676
1. Does not include one joint investment by a U.S. and a Turkish company. 2. Does not include one joint investment by a British and a Qatari company.

Private equity activity

After remaining silent in 2009, financial investors signaled they were back on track in 2010, by signing 24 deals with a total deal value of c. US$850 million including estimates for deals with undisclosed values.

Companies operating in the healthcare, entertainment and food & beverage sectors were sought-after M&A targets. We observed some financial investors joining forces either to bid for companies or strengthen their portfolios. There was also a small number of financial investors who exited their prior investments; we will witness more exits in 2011.

35.0 35,0 31.0 31,0 30.0 30,0

25,0 25.0 (U billio US$ on) 20,0 20 0 20.0

35.0% 35,0% 30.1% 30,1% 29.0 29,0 30.0% 30,0%

25,0% 25.0%

19.0 19,0 19 0 11.6% 11,6%

19.3 19,3 19 3 16.2 16,2

20.0% 20,0% 20 0% 15.0% 15,0% 12.0 12,0% 4.9 4,9 5.8 5,8 58 0.7 0,7
2008 2009

15.0 15,0 10.0 10,0 5.0 5,0 0.0 0,0

12.2% 12,2% 10.0% 10,0% 2.9% 2,9% 0.9 0,9

2010 5,0% 5.0% 0,0% 0.0%

0.8% 0,8% 0,3 0.3

2005 Total Deal Value

2.2 2,2
2006

2.3 2,3

2007

Financial Investor Deals

Ratio to Total Deal Value

List of Private Equity Deals

#
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Acquirer
Union Investment One Equity Partners & Rhea Investments Esas Holding Investcorp European Bank for Reconstruction and Development (EBRD) IFC Rhea Investments Templeton Asset Management Rhea Investments Rhea Investments Rhea Investments Bancroft Private Equity NBK Capital (Swan Holding) Kerten Rhea Investments Ashmore Riverside Tiger Global Management Argus Capital Partners & Qatar First Investment Bank Actera Group Turkven WNC Kids Holding (Eurasia Capital Partners & FMO & Balkan Accession Fund) Esas Holding

Origin
Germany Turkey; USA Turkey Bahrain UK USA Turkey USA Turkey Turkey Turkey UK Kuwait Ireland Turkey UK USA USA UK; Qatar Luxembourg Turkey Netherlands Turkey

Target
Forum Mersin Nortel Networks Neta Tiryaki Agro Fiba Sigorta ekerbank Envitec Reysa GYO Seta Tbbi Cihazlar Netsafe Bilgi Dentistanbul Kayalar Kimya Dnya Gz Hastanesi House Apart Marmara Ferryboats Nezih Kitap Krtasiye Tropikal Bahe ve Evcil Hayvan rnleri DSM Grup letiim Pazarlama (Trendyol.com) Memorial Health Group Mars Entertainment Group Domino's Pizza in Turkey Wenice Kids Mars Entertainment Group

Sector
Shopping Center Telecommunications Food & Beverage Financial Services Financial Services Waste Treatment Real Estate Manufacturing IT Healthcare Chemicals Healthcare Tourism Logistics & Transportation Retail Food & Beverage IT Healthcare Entertainment Food & Beverage Retail Entertainment

Stake
35.0% 53.1% 88.0% N/D 10.0% 1.0% 33.0% 5.9% 83.8% 70.0% 100.0% N/D 30.0% 50.0% 99.0% N/D N/D N/D 40.0% 60.0% 100.0% 50.0% N/D

Deal Value (US$ million)

93.0 83.7 82.4 50.0 33.6 8.3 7.0 6.0 3.2 0.7 0.2 N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D

AFM Uluslararas Film Prodksiyon Entertainment

Deal rankings

The largest 5 deals made up c. 51% of the total deal volume in 2010, and the top 10 deals accounted for 69% of the total volume. Privatizations stole the spotlight in the top deals list. As the largest private sector deal, BBVAs acquisiton of Garanti Bank made up 20% of total deal value in 2010.

Average deal size in 2010 was c. US$140 million (c. US$55 million in 2009). Excluding privatizations and the Garanti Bank deal, the average deal size of the remainder fell to US$50 million (c. US$35 million in 2009), indicating that mid-cap segment deals continue to dominate the Turkish M&A scene. On the other hand, valuations have shown signs of recovery and signal a return to pre-crisis levels in 2011.

Top 5 Deals
Acquirer Banco Bilbao Vizcaya Argentaria kaya naat San. & MMEKA Makine thalat Yldzlar SSS kaya naat San. & MMEKA Makine thalat MMEKA Makine thalat Target Trkiye Garanti Bankas Boazii Elektrik Datm Toroslar Elektrik Datm Gediz Elektrik Datm stanbul Anadolu Yakas Elektrik Datm (AYEDA) Stake Acquired 24.9% 100.0% 100.0% 100.0% 100.0% Deal Value (US$ million) 5,837.8 2,990.0 2,075.0 1,920.0 1,813.0

10

Sectoral overview

M&A activity in the Turkish energy sector outperformed itself by accomodating 58 deals, 33 of which were privatizations. The total value of energy transactions exceeded US$16.9 billion including estimates for deals with undisclosed values, 83% of which came from privatizations. Of the 33 energy sector privatizations, there were 18 generation assets of EA, 11 electricity distribution companies, 3 geothermal reserves and 1 natural gas distribution company subject to sale. Additionally, on the private sector side, there were new entrants to the attractive sector, as well as foreign strategic players which increased their stakes in Turkish investments. On the contrary, financial investors showed no interest in the energy sector due to regulatory issues, exit difficulties and perceived risk in sustainability of margins. Foreign investors interest towards Turkish FSI never ceased. Financial services sector hosted one of the largest banking deals in Turkish M&A history, as Spanish BBVA acquired a 25% shareholding in Garanti Bank for a consideration of c. US$5.8 billion. There were 14 other deals in the sector. 95% of the disclosed deal volume was generated by the Garanti Bank and Fiba Sigorta deals. Food & beverage, manufacturing, tourism, and services were other hot sectors in 2010. Financial investors were especially keen on targets operating in the healthcare, entertainment, food & beverage, financial services, retail and IT sectors. Half of healthcare sector deals were completed by financial investors.

Deal Number
Energy Food & Beverage Financial Services Manufacturing Tourism Services IT Chemicals Retail Healthcare Entertainment Real Estate Media Other 0

Deal Number
58 23 15 13 11 10 8 8 7 7 5 5 4 29 10 20 30 40 50 60

Deal Value (Disclosed)

Energy Financial Services Infrastructure Tourism Shopping Center Food & Beverage Entertainment Services Retail Real Estate Wholesale & Distribution Manufacturing Other 0

16,596 16.596
6.384 6,384 421 405 322 193 165 158 143 132 117 102 299

5,000 5.000

10,000 10.000 (US$ million)

15,000 15.000

20,000 20.000

11

Prospects

As foreseen in last years review, 2010 was indeed a year of gradual recovery in the financial markets. Domestic and foreign investors, as well as Turkish sellers were able to act more confidently as their perception regarding the future was altered for the better. As 2011 begins, we observe that all investors have begun to view Turkey as a country they must invest in, rather than a country they consider investment-worthy. Today, for the first time, the upcoming general election is not perceived as a potential risk by investors. While investors foster a heart-felt belief in the growth potential of Turkey; they also closely monitor macro indicators such as the current account deficit, budget deficit, per capita borrowing and the value of the Turkish Lira. Expectations regarding the economy and the credit rating upgrade are also positive influences, supporting investors perception. As a result of all, we expect a high volume of M&A in 2011. Nonetheless, given a successful privatization program in 2011, a significant portion of the deal volume in 2011 would come from privatizations again. State-owned assets such as IDO (Istanbul Fast Ferries), IGDA, Electricity Generation Assets, Sugar Factories, Bridges and Highways, Galataport and National Lottery are all subject to sale.

Foreign investors appetite towards Turkey is expected to increase in 2011, leading them to re-claim a higher stake in the deal volume. Energy, healthcare, pharmaceuticals, retail, media, education and automotive parts will be sectors hosting significant activity. Private equity firms will invest much more in 2011. Furthermore, we will see more exits. The investment enthusiasm towards Turkey will hike up valuations, driving multiples back to pre-crisis levels. Provided that privatizations are run successfully, we expect the deal volume in 2011 to exceed the US$20 billion level.

12

Deal list (January 1 December 31)

#
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Acquirer
Banco Bilbao Vizcaya Argentaria kaya naat San. & MMEKA Makine thalat* Yldzlar SSS kaya naat San. & MMEKA Makine thalat* MMEKA Makine thalat OMV MMEKA Makine thalat Park Holding Limak Holding Aksa Elektrik* Energo-Pro Limak Holding Sompo Japan Insurance Kolin naat SGM Enerji Aksa Elektrik Corio Karavil Dayankl Tketim Mallar & Ceylan naat Turk Tur Dou Holding AES Kamil Engin Yeil Aksa Elektrik Akfen Holding TransAtlantic Worldwide Dosu Maya Union Investment Groupe Cheque Dejeuner Frat Enerji retim Credit Europe Bank N.V. One Equity Partners & Rhea Investments Esas Holding Mars Entertainment Group** Luxottica Group Fortis Finansal Kiralama Kayseri ve Civar Elektrik

Origin
Spain Turkey Turkey Turkey Turkey Austria Turkey Turkey Turkey Turkey Czech Republic Turkey Japan Turkey Turkey Turkey Netherlands Turkey Turkey Turkey USA Turkey Turkey Turkey Canada Turkey Germany France Turkey Netherlands Turkey; USA Turkey Turkey Italy Turkey Turkey

Target
Trkiye Garanti Bankas Boazii Elektrik Datm Toroslar Elektrik Datm Gediz Elektrik Datm stanbul Anadolu Yakas Elektrik Datm (AYEDA) Petrol Ofisi Bakent Doalgaz Akdeniz Elektrik Datm Uluda Elektrik Datm Trakya Elektrik Datm Aralk HEPP, Hamzal HEPP & Readiye Cascade skenderun Liman Fiba Sigorta amlbel Elektrik Datm Bis Enerji Frat Elektrik Datm Bursa Anatolium Dicle Elektrik Datm Marmaris Imperial, Bodrum Imperial and Belek Waterworld Grand Hyatt Istanbul Entek Elektrik Ceylan Giyim Vangl Elektrik Datm Akfen GYO Zorlu Petrogas and Amity Oil International Akmaya Forum Mersin Multinet Kurumsal Hizmetler EA Portfolio 7 Millenium Bank Nortel Networks Neta AFM Uluslararas Film Prodksiyon AFM Uluslararas Film Prodksiyon Luxottica Gzlk TEB Finansal Kiralama EA Portfolio 10

Sector
Financial Services Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Infrastructure Financial Services Energy Energy Energy Shopping Center Energy Tourism Tourism Energy Retail Energy Real Estate Energy Food & Beverage Shopping Center Services Energy Financial Services Telecommunications Entertainment Entertainment Wholesale & Distribution Financial Services Energy

Stake
24.9% 100.0% 100.0% 100.0% 100.0% 54.2% 80.0% 100.0% 100.0% 100.0% 100.0% N/A 93.4% 100.0% 50.0% 100.0% 100.0% 100.0% N/A 100.0% 49.6% 92.0% 100.0% 32.5% 100.0% 100.0% 35.0% 100.0% 100.0% 95.0% 53.1% 88.0% 88.0% 35.2% 90.0% 100.0%

Deal Value (US$ million)

5,837.8 2,990.0 2,075.0 1,920.0 1,813.0 1,397.1 1,211.0 1,165.0 940.0 622.0 405.9 372.0 286.4 258.5 250.0 230.3 229.0 228.0 145.0 136.8 136.5 100.8 100.1 97.8 96.5 94.0 93.0 90.0 86.4 85.0 83.7 82.4 82.4 75.3 72.9 69.7

(*) The acquirer might change in either one of the Boazii, Gediz and Trakya electricity distribution privatizations pending the related Competition Authority decision. (**) Esas Holdings acquisition of Mars Entertainment and Mars Entertainments acquisiton of AFM Uluslararas Film Prodksiyon are part of a single deal pending the related Competition Authority decision. 13

#
37 Dabur 38 Strer Group 39 Ipragaz 40 Grupo Auto Sueco 41 Alarko Holding 42 Aksu Enerji

Acquirer

Origin
India Germany Turkey Portugal Turkey Turkey Turkey USA Bahrain Turkey Turkey USA Turkey Portugal UK Turkey Turkey Turkey Turkey Turkey Lebanon Turkey Turkey Turkey Austria Turkey Austria Turkey Turkey Turkey Turkey Qatar Turkey Turkey Hobi Group

Target

Sector
Manufacturing Services Energy Automotive & Parts Energy Energy Energy Energy Food & Beverage Infrastructure Energy Wholesale & Distribution Energy Tourism Financial Services Food & Beverage Iron & Steel Retail Energy Real Estate Financial Services Energy Tourism Tourism Packaging Energy Financial Services Shipbuilding Energy Energy Manufacturing Tourism Energy Energy

Stake
100.0% 40.0% 100.0% 100.0% 50.0% 100.0% 100.0% 75.0% N/D 60.0% N/A 49.4% 100.0% 57.0% 10.0% 100.0% 9.3% 100.0% 100.0% 25.5% 9.0% N/A 100.0% N/A 1.9% N/A 10.0% 100.0% 100.0% 100.0% 50.0% 100.0% 100.0% 100.0%

Deal Value (US$ million)

69.0 68.0 67.0 62.7 58.5 56.1 50.1 50.0 50.0 49.3 48.8 42.0 40.8 34.8 33.6 33.1 33.0 29.6 29.1 28.0 26.0 25.6 25.0 25.0 23.3 20.5 20.1 20.0 18.1 17.4 15.5 15.0 14.7 13.8

Strer Kentvizyon Yldrm Petrol (ExEnGaz) Volvo Otomotiv Turk (ASC Turk Makina) Altek Alarko Elektrik Santrallar EA Portfolio 4 EA Portfolio 18 S-Oil (Terminals) & Aves (Terminals) Tiryaki Agro Ortadou Antalya Liman letmeleri Aydn-Pamukren Jeotermal Sahas Arena Bilgisayar EA Portfolio 16 Carpe Diem Claros Hotel Fiba Sigorta Ordu Ya Sanayi Borelik elik Ipek Giyim Maazalar EA Portfolio 14 Dou GE GYO Turkland Bank Aydn-Sultanhisar Jeotermal Sahas Taksim Savoy Hotel Club Magic Life Kemer Imperial Hotel Mondi Tire Kutsan Aydn-Nazilli Jeotermal Sahas Ray Sigorta Soli Gemi naat Rasa Enerji EA Portfolio 3 Massta Mudurnu Abant Sunta Munamar Hotel EA Portfolio 19 EA Portfolio 13

43 Nema Kimya-Espe Consortium 44 Nu Star Energy LP 45 Investcorp 46 Global Liman letmeleri 47 Yiitler Enerji 48 Redington Ltd. 49 Nas Enerji 50 Grupo Onyria 51 European Bank for Reconstruction and Development (EBRD) 52 Alta irketler Grubu 53 Kerim elik (Borusan Holding) 54 CarrefourSA Carrefour Sabanc 55 Boydak Enerji 56 Dou Holding 57 BankMed 58 elikler naat 59 Mahmut evik (Private Investor) 60 GYO 61 Mondi 62 Erdem Consortium (Kipa Mensucat) 63 Vienna Insurance Group 64 Enka naat & imta 65 Aksa Enerji 66 Nema Kimya-Espe Consortium 67 Yldz Entegre Aa Sanayi 68 Al - Maselah 69 Kisan naat 70 Kayseri ve Civar Elektrik

14

#
71 Alm naat 72 Seba Consortium 73 Aksa Enerji

Acquirer

Origin
Turkey Turkey Turkey Poland Turkey Turkey Turkey Turkey Turkey USA Turkey Turkey Greece Turkey Saudi Arabia Turkey Turkey Turkey Norway Turkey Turkey Turkey Turkey USA Turkey Turkey Turkey Turkey Turkey Turkey Turkey Poland Turkey Russia

Target
Ege Palas Hotel EA Portfolio 6 Idil Iki Enerji Sanayi ITD Inka Hotel Enbat Elektrik retim Atl Zincir ne Factory Newmont Altn Madencilik eker Mortgage Finansman ekerbank Dnya Hal Ades Gda Sanayi JFK Kennedy, Istanbul afak and Gztepe afak Hospitals EA Portfolio 9 Constab Middle East Polimer EA Portfolio 11 Envitec DS Smith Copikas Yeil Enerji EA Portfolio 1 Kristal Kola EA Portfolio 15 EA Portfolio 17 Reysa GYO EA Portfolio 2 EA Portfolio 8 Tat Yeniehir Facilities Radyo 5 Desmer Meges Boya Bandag Lastik Elektronik Sanal Ticaret Biliim Hizmetleri (EST) Seta Tbbi Cihazlar Ramateks

Sector
Tourism Energy Energy IT Tourism Energy Manufacturing Mining Financial Services Financial Services Textile Retail Healthcare Energy Chemicals Energy Waste Treatment Packaging Energy Energy Food & Beverage Energy Energy Real Estate Energy Energy Food & Beverage Media Financial Services Chemicals Manufacturing IT Manufacturing Iron & Steel

Stake
100.0% 100.0% 100.0% 99.7% 100.0% 100.0% N/A 100.0% 51.0% 1.0% 100.0% 100.0% N/D 100.0% 100.0% 100.0% 33.0% 100.0% 5.0% 100.0% 38.0% 100.0% 100.0% 5.9% 100.0% 100.0% N/A N/A 87.8% N/A 100.0% 100.0% 83.8% 100.0%

Deal Value (US$ million)

13.6 13.5 11.6 11.3 10.0 10.0 9.5 8.5 8.4 8.3 8.2 8.1 8.0 7.6 7.4 7.0 7.0 6.8 6.7 6.6 6.6 6.6 6.4 6.0 5.8 5.7 5.3 5.2 4.8 4.2 3.6 3.3 3.2 3.0

74 Asseco South Eastern Europe 75 Marsan Holding (Mert iller) 76 Kardemir Karabk Demir elik 77 Eczacba Yatrm Holding 78 Koza Altn 79 ekerbank 80 IFC 81 Beks orap 82 Migros Trk 83 Hygeia 84 vme Elektromekanik 85 Astra Polymers 86 Ka-Fnih Enerji 87 Rhea Investments 88 Olmuksa International Paper 89 Statkraft 90 Kent Solar Elektrik 91 Ihlas Holding 92 Demista Dou Elektrik 93 Er-Bu naat 94 Templeton Asset Management 95 Sarar Giyim 96 Seba Consortium 97 Anadolu Efes 98 NTV Avrupa Yaynclk 99 Tda deme Sistemleri 100 Aydoan Boya 101 Brisa Bridgestone 102 Asseco South Eastern Europe 103 Rhea Investments 104 Mechel Steel Group 105 Fides Reklam Enerji 106 Migros Trk 107 Migros Trk 108 Ihlas Holding 109 Atl Zincir ne 110 Vestel Elektronik

Turkey Turkey
Turkey Turkey Turkey Turkey

EA Portfolio 5 Egeden Gda

Ama Gda Atmaca Gda retim Eczacba Yatrm Holding's stake in Atl Zincir ne Cabot zmir Yazlm

Energy Retail
Retail Food & Beverage Manufacturing IT

100.0% 100.0%
100.0% 27.0% 30.0% 58.0%

2.8 2.7
2.2 1.9 1.4 1.1

15

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111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 Ali Haydar Gl Doysan Tarm Rhea Investments

Acquirer

Origin
Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey UK Kuwait Turkey Turkey Turkey USA Portugal Ireland Turkey Turkey Turkey France Turkey Turkey Turkey Turkey Turkey Turkey Bermuda Turkey Poland Turkey UK Turkey

Target
Frigo-Pak Gda Frigo-Pak Gda Netsafe Bilgi eker Biliim Sanayi Le Chic FM Radyo Euro Sigorta (former Toprak Sigorta) Mikroelektronik Aratrma Kristal Gda Dentistanbul Hakkasan Istanbul Seykar Gda apamarka Bozkurt Reelleri Vita Ya Kayalar Kimya Dnya Gz Hastanesi Essentium Enerji Two hydropower projects Kayalar Meffert Boya Eti Elektrik Begonvil Turizm House Apart Gedizler Filo Kiralama kale Enerji Tokat Sigara Fabrikas Metis Konur Salk Hizmetleri Gven St Fabrikas Marmara Ferryboats Ovack Gold Reserve ABK Enerji Elektrik retim Framissima Boyalk Beach Hotel Doysan Seed Plant SABIC Polimer Endstrisi Hedef Menkul Deerler elebi Hizmet Restorant (Arby's Chain in Turkey) Nezih Kitap Krtasiye M Oil

Sector
Food & Beverage Food & Beverage IT IT Media Financial Services IT Food & Beverage Healthcare Entertainment Food & Beverage Food & Beverage Food & Beverage Food & Beverage Chemicals Healthcare Energy Energy Chemicals Energy Tourism Tourism Services Energy Tobacco Services Healthcare Food & Beverage Logistics & Transportation Mining Energy Tourism Food & Beverage Chemicals Financial Services Food & Beverage Retail Energy

Stake
31.4% 31.4% 70.0% 98.0% N/A 3.7% 85.0% 62.0% 100.0% 100.0% 75.0% 100.0% 100.0% 100.0% N/D 30.0% 50.0% 100.0% 50.0% 50.0% N/D 50.0% 100.0% 100.0% N/A 75.0% 50.0% N/A 99.0% N/A 100.0% 100.0% N/A 70.0% 100.0% 100.0% N/D 70.0%

Deal Value (US$ million)

0.8 0.8 0.7 0.6 0.5 0.5 0.4 0.3 0.2 N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D

Metis Yatrm Holding Dost Radyo TV Euro Menkul Kymetler Aselsan Ihlas Holding Rhea Investments Istanbul Doors Nazl Gda Aymar Aymar Aymar Bancroft Private Equity NBK Capital (Swan Holding) Turen Enerji Enerjisa Kayalar Kimya Cogentrix Grupo Onyria Kerten Hedef Filo Kiralama Akenerji Mehmet Soyupak and Sami lk (Private Investors) Teleperformance Acbadem Salk Hizmetleri Trkiye Tarm Kredi Kooperatifleri Merkez Birlii Rhea Investments Koza Altn A group of Turkey based investors zkarde Grup Bunge Petroline X-Trade Brokers Tab Gda Ashmore Milan Petrol

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149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 Fritz Egger Turkey Properties Sofra Hazr Yemek STFA Holding Ova Tat Ali Akman Legrand TEB Mali Yatrmlar Greif Riverside Alliance Boots BNP Paribas TOBB & TOBB-ET Kerevita Gda Kerevita Gda

Acquirer

Origin
Austria Turkey Turkey Turkey Turkey Turkey France Turkey USA USA UK France Turkey Turkey Turkey USA Australia UK; Qatar Turkey Luxembourg Turkey Turkey Lebanon France Germany Netherlands Turkey Turkey Spain USA USA UK Switzerland Netherlands Germany France Finland

Target
Roma Plastik Aland Emlak Damak Hazr Yemek Energaz Yal Tat Petroline Inform Elektronik Fortis Bank nsa Ambalaj Tropikal Bahe ve Evcil Hayvan rnleri Hedef Alliance Holding Fortis Emeklilik ve Hayat Mesa Hospital (Stz, Ankara) Mersu Su rnleri Ancoker Su rnleri DSM Grup letiim Pazarlama (Trendyol.com) Nitromak DNX Kimya Memorial Health Group Nisan Elektromekanik Mars Entertainment Group Domino's Pizza in Turkey Doal Elektrik retim Depur Kimya Project House Mina Al Elkon Elektrik Bizim Menkul Deerler Muradiye Elektrik Metoks Madencilik Metalurji Park D Ticaret Artesis SFC Entegre Orman rnleri and Baks Bat Kimya DYO Boya's Unsaturated Polyester (UP) resins business Wenice Kids Diamed Diyaliz Hizmetleri Derya Bro Malzemeleri IRIS Telecom

Sector
Manufacturing Real Estate Services Energy Services Chemicals Manufacturing Financial Services Packaging Food & Beverage Pharmaceuticals Financial Services Healthcare Food & Beverage Food & Beverage IT Manufacturing Healthcare Energy Entertainment Food & Beverage Energy Chemicals Media Building Materials Manufacturing Financial Services Energy Mining Building Materials IT Manufacturing Chemicals Retail Healthcare Manufacturing Telecommunications

Stake
71.5% N/D 50.0% 47.0% 100.0% 99.0% 100.0% 100.0% N/D N/D 10.0% 100.0% N/A 100.0% 45.0% N/D 50.0% 40.0% 50.0% 60.0% 100.0% 80.0% N/A 51.0% 64.0% 100.0% 50.0% 70.0% N/D N/D N/D N/D N/A 50.0% 90.0% 70.0% 100.0%

Deal Value (US$ million)

N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D

Tiger Global Management Incitec Pivot Argus Capital Partners & Qatar First Investment Bank Boydak Holding Actera Group Turkven Hamza Doan Baalbaki Group Havas Euro RSCG Worldwide Knauf International Imtech Boydak Holding Boydak Holding Befesa Medio Ambiente RPM Building Solutions GE Energy Kronospan Holdings DSM Composite Resins WNC Kids Holding (Eurasia Capital Partners & FMO & Balkan Accession Fund) Fresenius Groupe Hamelin Nokia Siemens Networks

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#
186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 Tevhit Karakaya

Acquirer

Origin
Turkey UK Turkey USA China Spain Turkey Turkey Germany Netherlands Germany Turkey Kuwait Turkey Turkey Turkey UAE Turkey

Target
Star Medya Yaynclk and Kanal 24 Rotaforte PRNet Halkla Ilikiler Gney Di Deposu myTECHNIC Kartek-Mekaser Danmanlk Enerji Mars Entertainment Group Marsan Gda ECE Trkiye Proje Ynetim Bianchi Bisiklet Eden Meyve Suyu Damla Su Enerji Kl Deniz rnleri Kudret Enerji Pamuk Elektrik Yalkavak Marina Aramex International Hava Kargo Doan Gda and Balaban Gda Media

Sector

Stake
51.0% 65.0% 100.0% 50.0% N/D 100.0% N/D N/D 48.0% 100.0% 50.0% 85.0% 20.0% 90.0% 100.0% 100.0% 50.0% 51.0%

Deal Value (US$ million)

N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D

United Business Media Ajans Press Henry Schein HNA Group (China) & Bravia Capital Partners (USA) Tecpesa Esas Holding** Yldz Holding ECE Projektmanagement Accell Group Eckes-Granini Ergun Bal NBK Capital Nuh Enerji Nuh Enerji Palmali Grubu Aramex Nestl Turkey

Services Services Wholesale & Distribution Services Services Entertainment Food & Beverage Real Estate Manufacturing Food & Beverage Energy Agriculture & Breeding Energy Energy Infrastructure Logistics & Transportation Food & Beverage

(**) Esas Holdings acquisition of Mars Entertainment and Mars Entertainments acquisiton of AFM Uluslararas Film Prodksiyon are part of a single deal pending the related Competition Authority decision.

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This publication contains general information only and is not intended to be comprehensive nor to provide specific accounting, business, financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any decision or action that may affect you or your business. Before making any decision or taking any action that may affect you or your business, you should consult a qualified professional advisor. Whilst every effort has been made to ensure the accuracy of the information contained in this publication, this can not be guaranteed, and neither Deloitte Touche Tohmatsu nor any related entity shall have any liability to any person or entity that relies on the information contained in this publication. Any such reliance is solely at the users risk.
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For more information about M&A advisory services from Deloitte Turkey, contact: Baak Vardar Partner bvardar@deloitte.com + 90 212 366 63 71 DRT Kurumsal Finans Danmanlk Hizmetleri A.. Sun Plaza Maslak Mah. Bilim Sok. No:5 34398 ili, stanbul Tel: 90 (212) 366 60 00 Fax: 90 (212) 366 60 30 Armada Merkezi A Blok Kat:7 No:8 06510, Stz, Ankara Tel: 90 (312) 295 47 00 Fax: 90 (312) 295 47 47 Punta Plaza 1456 Sok. No:10/1 Kat:12 Daire: 14 15 Alsancak, zmir Tel: 90 (232) 464 70 64 Fax: 90 (232) 464 71 94 www.deloitte.com.tr www.verginet.net www.denetimnet.net Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 140 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's approximately 170,000 professionals are committed to becoming the standard of excellence. Deloitte's professionals are unified by a collaborative culture that fosters integrity, outstanding value to markets and clients, commitment to each other, and strength from cultural diversity. They enjoy an environment of continuous learning, challenging experiences, and enriching career opportunities. Deloitte's professionals are dedicated to strengthening corporate responsibility, building public trust, and making a positive impact in their communities. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. 2011 Deloitte Turkey. Member of Deloitte Touche Tohmatsu Limited
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