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Turk Telecom up for sale
Posted on Friday, 20 September 2019 12:08
The lenders that took control of Türk Telekomünikasyon (Turk Telecom) in December 2018 for TRY 9.84 billion (USD 1.73 billion) have hired Morgan Stanley for the divestment of their 55.0 per cent stake in the Turkish telecommunications giant.

According to the statements yesterday, Akbank, Turkiye Garanti Bankasi and Turkiye Is Bankasi, among others, intend to sell either the equity interest or the special purpose acquisition vehicle that holds the investment.

Ak Yatirim Menkul Degerler, Garanti Yatirim Menkul Kiymetler and Is Yatirim Menkul Degerler will act as local advisers in the process and in the negotiations with potential buyers.

Levent Yapilandirma Yönetimi was established to take control of Turk Telecom after the former owner, Ojer Telekomunikasyon, defaulted on a USD 4.75 billion loan in September 2016 and missed further repayments.

Akbank, Turkiye Garanti Bankasi and Turkiye Is Bankasi, among others, own 35.6 per cent, 22.1 per cent, 11.6 per cent, and the balance, respectively, of the special purpose acquisition vehicle.

Ojer Telekomunikasyon took out the money to fund its USD 6.55 billion acquisition of a 55.0 per cent stake in Turk Telecom from the Turkish government in 2005.

Zephyr, the M&A database published by Bureau van Dijk, shows the privatisation is the largest-ever deal targeting Turkey’s telecommunications sector.

Levent’s acquisition of Turk Telecom from Ojer is the fifth-largest on record.

The telecommunications company has upwardly recorded its 2019 guidance on earnings before interest, tax, depreciation and amortisation (EBITDA) on the back of strong operational profitability in the first half of 2019.

Consolidated growth will be around 15.0 to 16.0 per cent on 2018 and consolidated EBITDA is now expected at TRY 10.30 billion to TRY 10.50 billion.

© Zephus Ltd