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Same-Day Analysis
Oger Telecom Offers 20% Premium on Turk Telekom Share Offering
Published: 2/22/2010
IHS Global Insight Perspective | |
Significance | Oger is keen to acquire any available shares in the Turkish incumbent operator, in the past it has made heavy investment in the operator through share purchase and operational management. |
Implications | Although the Turkish government is keen to sell off some of its 30% ownership in the operator, it still remains uncertain if it will offer it to Oger Telecom or offer it as a secondary public offer as originally planned. |
Outlook | Despite the recent poor economic conditions in Turkey, Turk Telekom fares well as a relatively stable operator providing all services including mobile and ADSL services. |
Oger Telecom which is controlled by Saudi Oger has announced it will pay a 20% premium for the Turk Telekom's shares which will be sold off by the government Reuters News reports. The state owned operator has for some time been considering making a public offering for 15–20% as the government plans a return on its investment. Oger Telecom already owns 55% of the Turkish incumbent operator after paying US$6.55 billion for the stake in a 2005 (see Turkey: 15 November 2005: Oger Telecom Signs Turk Telecom Deal). The Turkish government owns 30% and has said it plans a public offering for part of that stake in 2010. The current shareholder structure of the Turkish operator is: 55% ownership by Oger Telecom, 30% held by the Turkish Treasury, and the remaining 15% Free Float.
The Turkish government started considering the sale earlier this year originally considering a secondary public offering (SPO) (see Turkey: 7 January 2010: Turkish Government Considers Secondary Public Offering for Turk Telekom). The government requires extra cash
Outlook and Implications
At present it is not certain if Dubai-based Oger Telecom will be able to acquire part of the government's 30% stake in Turk Telekom or whether it will be placed on sale for a public offering. However, Oger Telecom has been interested in the Turkish operator for some time; almost two years ago the operator invested purchased a further 20.1 million shares in Turk Telekom (see Turkey: 2 June 2008: Saudi Oger Buys 20.1 mil. Shares in Turk Telekom). Oger made its first purchase in Turk Telekom in 2005 when the government was starting a privatisation phase of the operator.
Turk Telekom has a monopoly on fixed-line services in the country and is fairing particularly well for broadband services. Turk Telekom is the leading provider of fixed-line services in Turkey. Through its 81.12% shareholding in Avea it also provides mobile communications services in Turkey. Since the introduction of mobile number portability (MNP) in the country, Avea has been increasing its market share as other operators switch to its cheaper service offerings.Most Viewed Articles
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