STC linked with acquisition of Türk Telekom stake
Reuters is reporting that STC is the only company so far in talks to buy Oger Telecom's stake in Türk Telekom in a deal that could be worth around $3.9 billion
Saudi Telecom Company (STC) has emerged as a frontrunner to buy a 55% stake in Türk Telekom currently owned by embattled majority shareholder Oger Telecom, according to reports.
Reuters reports that the deal, which will be worth around $3.9 billion, would see STC become the majority shareholder in the Turkish operator, with Oger looking to sell in order to ease a financial crisis.
Saudi-owned Oger Telecom is under pressure from creditors, having missed two repayment instalments of a $4.75 billion loan it took out in order to refinance existing debt.
STC has previously been linked with buying a stake in Oger itself, but, according to Reuters’ source, has now entered negotiations to buy its stake in Türk Telekom – the only company to do so thus far.
Even if a deal is agreed, there is no guarantee it will be approved by the Turkish government, who could step in to acquire the holding itself, Reuters reports.
“Turk Telekom is a strategic and important company. It will not be left to its fate for sure. Public institutions would intervene when needed and this option is still a matter of consideration,” another source told Reuters.
Turk Telekom is the 100% owner of Türk Telekom International (TTI), one of the leading wholesale firms in the CEE, Turkey, Caucasus and Middle East regions. STC also has a significant wholesale operation.