Turk Telekom shares up 6% on wealth fund takeover talks

  • 12/20/2021
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ISTANBUL, Dec 20 (Reuters) - Turk Telekom (TTKOM.IS) shares rose more than 6% on Monday after Turkey"s wealth fund began talks over the acquisition of 55% of the telecoms company after the stake"s owner encountered financial problems. OTAS, a unit of the Dubai-based Oger Telecom, had taken out a $4.75 billion loan in 2013 to acquire 55% of Turk Telekom but failed to keep up payments on what was Turkey"s largest corporate loan at the time. The creditor banks in 2018 set up a special purpose vehicle for the shares of Turk Telekom that were given as collateral for the loan and the talks over that stake are aimed at transferring the Turk Telekom shares to a competent investor, the banks said. "We deem the news as positive for the elimination of shareholder uncertainty in Turk Telekom ... we deem the process positive in terms of banks" capital adequacy ratios as well, broker Oyak Securities said in a note. The wealth fund was set up in 2016 by the government to develop and increase the value of Turkey"s strategic assets and provide resources for investment. Reporting by Can Sezer and Jonathan Spicer Writing by Ezgi Erkoyun Editing by Ece Toksabay and David Goodman

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