Turkey Wealth Fund (TWF) announced on Thursday that it has signed an agreement with LYY Telekomünikasyon to purchase 55% of shares in Turk Telekom.
the purchase of the shares was valued at $1.65 billion, the wealth fund said, adding that 2021 dividends for the shares would be paid at LYY.
The transaction must be approved by regulators, he said. in A press release.
OTAŞ, one unit of Oger Telecom, based in Dubai, had taken out a $4.75 billion loan in 2013 to acquire 55% of Türk Telekom but failed keep up Payments on which was Turkey’s biggest corporate loan at the time.
Creditor banks in 2018 set up a special goal vehicle for the shares of Türk Telekom which have been pledged as collateral for a loan.
The banks involved included Akbank, QNB Finansbank, Garanti BBVA and İşbank among others.
The TWF was set up in 2016 by the government develop and increase value of Turkey’s strategic assets and provide resources for investment.
the purchase reflects the conviction of the heritage fund in along-term outlook of telecommunications sector in Turkey.
“As (Turkey’s Wealth Fund), we believe that we will add added value to the telecommunications sector by contributing to the digitization process while focusing on efforts to further strengthen the technological infrastructure of our country,” CEO Salim Arda Ermut said. in the press release.
