Turkcell has published confirmation that it has acquired the 20% stake in Belarusian Telecommunications Network (BeST, branded life:)) it did not already own from the Republic of Belarus’ State Asset Committee. The transaction was completed on 9 December 2022 at a purchase price of USD1,165.66 per share, within the framework of an initial statement dated 8 December 2022.
In addition, negotiations were held between Turkcell, BeST and Belarusian authorities regarding the restructuring of the company’s investments, including potential ‘improvement of competitive conditions and some tax advantages’. Specifically:
I. An investment agreement was signed between Turkcell, BeST and the Republic of Belarus for the development of telecommunications infrastructure, covering the years 2022-2032, with a total investment amount of not less than USD100 million. In addition, within the framework of the Investment Agreement, an additional amount of USD100 million will reportedly be ‘paid annually within a period of ten years by paying at least 50% of the net profit of BeST in the relevant year’.
II. Relevant institutions of the Republic of Belarus to amend the country’s mobile communication interconnection fees (mobile termination rates [MTRs]), taking into account the provisions of the Investment Agreement, and determined the mobile call termination fee for BeST as BYN0.001 for a period of five years. ‘In this way, the decrease in interconnection expenses will positively affect Turkcell’s operational profitability,’ it said.