An Oger Telecom-lead group completed arrangements for the transfer of a majority of the shares in fixed-line telecommunications provider Turk Telekom.
The group, including Oger Telecom and Telecom Italia, won the tender for a 55% stake in the company in July with a bid of $6.55 billion. The sale of a controlling stake in Turk Telekom is a key part of Turkey's IMF-backed privatisation programme. Economists hailed the completion of the sale, saying it would boost Turkey's image as a place to do business and help lure more foreign investment.
An official from Saudi Oger Telecom said that the company has paid a first instalment worth US$ 1.31 billion, or 20% of the tender price, to the Turkish Treasury. The head of Turkey's Privatisation Administration (OIB), Metin Kilci, confirmed that Oger had fulfilled all its obligations in the Turk Telekom sale and had made the first payment into the Treasury's account. Oger Telecom will pay the remaining sum in five equal instalments over five years.
Turk Telekom plans a meeting to form a new 10-member management board on Monday. The new management will then sign a concession contract with the Telecommunications Board (TK), the telecom sector regulator. The Telecommunications Board finalised the concession contract last week after the Council of State demanded some amendments. The opinion of the Council of State is needed when strategic state assets are transferred to private entities.
Turk Telekom is the world's 13th largest telecommunications operator, with 19 million subscribers. By completing the deal, Oger Telecom will also owning 55% of Turk Telekom's 40% stake in the country's third-largest GSM operator Avea, in which Telecom Italia's mobile arm holds a 40% stake. Turkey's Is Bankasi group holds the remaining 20% of Avea.
Source: Reuters - WDR/Intelecon Regulatory News |