Turkey Wealth Fund (TWF) is set borrow about $1.6 billion (TL 23 billion) from a consortium of banks to finance a takeover project of telecom giant Türk Telekom, according to a Bloomberg report on Thursday that cites sources with knowledge of the issue.
The sovereign wealth fund is in advanced talks with lenders, including those who jointly hold 55% of the capital – worth approximately $1.3 billion based on the current share price – in the telecommunications company, to guarantee the loan, sources said, asking not to be identified car talks are ongoing private.
the people said the deal could see Türk Telekom pay accrued dividends of 200 millions of dollars.
the terms of the loan is likely to include a one-year grace period without payment with repayment over the following four years, notes the report.
The TWF and special goal vehicle company, LYY Telekomünikasyon Inc., which represents the banks holding the 55% stake, declined a request for comment by Bloomberg.
Following the news, shares of Türk Telekom increased by 3.9%. the shares were trading 3.1% up like of 5:57 p.m. local time.
The ownership structure of Turkey second-most grand operator was a developing topic for years. Shareholder banks, which mainly include local companies, seized Türk Telekom’s stake about three years ago after the company defaulted. son old owner. on a multi-billion-dollar to lend.
Private lenders Akbank, Garanti and Iş Bank are major shareholders in LYY and are likely to provide the lion share of lending to TWF, while public lenders and smaller private the banks will also to contribute.
The Ministry of Treasury and Finance owns 25% of the company, including a so-called golden share which gives him management control while the heritage fund currently holds 6.7% of the shares and the rest is listed on the stock exchange.
