Banks Applied to Competition Authority to take over 55 percent of Türk Telekom

Banks Applied to Competition Authority to take over 55 percent of Türk Telekom

Akbank, Garanti Bank and Isbank are setting up a special purpose vehicle to take majority control of  Turk Telekom in a debt restructuring to take over Oger Telecom, which owns a 55% stake in Turk Telekom.

Lenders applied to Turkish Competition Authority (TCA). The brief description of application was published on the Remarks on Acquisition page of TCA’s website as “taking over of 55 percent share of Oger Telecom in Turk Telekom via a special purpose vehicle”.

Owned by the family of Lebanese Prime Minister, Saad Hariri, Oger Telecom received a total of $ 4.75 billion loan in 2013. Shares in Turk Telekom werepledged as collateral against the loan. However, Oger Telecom missed repayments, and thus, negotiations on sale or loan restructuring started. Banks were poised to take the majority stake in Turk Telekom.

55% of Turk Telekom’s shares belong to Oger Telecom, 25% belongs to the Turkish Treasury and 6.68% belongs to Turkish Wealth Fund. The remaining 13.32% is publicly traded in Borsa Istanbul.

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