Report: Turkey set to reject STC bid for Turk Telekom debt extension

By:
James Pearce
Published on:

Reports last month claimed STC had requested for an extension after Oger Telecom, the majority shareholder in Turk Telekom, missed a third consecutive repayment

Turkey is set to reject a request from Saudi Telecom Company to extend a debt deadline for Turk Telekom, according to a report from Reuters.

STC requested a repayment extension after Oger Telecom, the majority shareholder in Turk Telekom, missed a third consecutive payment on a $4.75 billion loan.

Citing unnamed sources, Reuters said the Turkish Treasury is set to reject the request whilst also making new appointments to the board of former state-owned operator Turk Telekom.

STC owns a 35% stake in Oger Telecom, which itself holds a 55% share of Turk Telekom, making STC an indirect investor in the Turkish unit. The Turkish government owns around 32% of the telco, which is Turkey’s largest fixed line operator.

STC has previously been linked with buying Oger Telecom outright, but more recent reports claim it may look to acquire the company’s stake in Turk Telekom directly.