Turk Telekom to be sold in August

02 June 2000
Telecoms

The Privatisation Administration (OIB) will sell a 20 per cent strategic stake in Turk Telekom in August, says newly appointed chief executive Ibrahim Alpturk. Analysts value the company at around $20,000 million, implying the strategic sale could fetch $5,000 million.

Bids for the shares in the national telecoms giant were expected to be invited by the end of May. Alpturk says that the government has decided not to spell out what management rights will be transferred to the strategic investor. These will be negotiated with individual bidders, he says. Up to 49 per cent of the utility will be sold next year. A 14 per cent stake will be divested through an initial public offering (IPO).

Alpturk says that the company will also purchase the country's fourth global system for mobiles (GSM) licence which is expected to cost at least $2,525 million - a base price set by Telecom Italia and Turkiye Is Bankasi in the April auction for a third licence (MEED 28:4:00). Funds accumulated in accounts kept at the treasury will cover much of the licence fee, he says.

Turk Telekom plans to invest a total TL 700 million million ($1,123 million) in infrastructure this year. Alpturk says the company is targeting profits of TL 494.3 million million ($793 million) in 2000, up from TL 451.6 million million ($724 million) in 1999.

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