Turk Telekom negotiations with Wealth Fund confirmed

21 Dec 2021

Reuters reports that shares in Turk Telekom (TT) rose more than 6% on Monday after the sovereign Turkey Wealth Fund (TWF) entered talks over the acquisition of a 55% stake in the fixed and mobile operator. Recent disclosures have confirmed September 2021’s initial reports that TWF (currently holding a total 6.7% TT stake including free float shares) was considering a majority takeover of TT, which is controlled by a Special Purpose Vehicle (SPV) formed by a group of creditor banks in 2018. Broker firm Oyak Securities said in a note: ‘We deem the news as positive for the elimination of shareholder uncertainty in Turk Telekom.’

TeleGeography’s GlobalComms Database notes that TWF owns a controlling stake in Turkcell – Turkey’s mobile market leader and second largest fixed broadband provider behind TT – as well as 100% of Turksat, the third-placed fixed broadband operator.

Turkey, Turk Telekom