Published On: Sat, Jun 20th, 2020

Turkey Wealth Fund to acquire 26.2% stake in Turkcell

Tagged with: | | | | | | |

(TWF) will acquire a stake of 26.2% in İletişim Hizmetleri (Turkcell), a Turkish telecoms and technology company, through multiple transaction agreements with , LetterOne, , Çukurova Holding, and others.

Turkcell runs an international mobile and fixed telecom business with over 47 million customers, along with local OTT platforms like BİP, TV+ and also Paycell and Financell techfin subsidiaries.

Turkey Wealth Fund, which is the wealth fund and investment arm of the Turkish government, said that the transactions are a one-off opportunity to resolve all disputes and litigations of shareholders, which will benefit Turkcell and its investors.

Following the completion of the transactions, Turkey Wealth Fund will be the largest shareholder in Turkcell, while gaining effective control over the latter’s board of directors.

Turkey Wealth Fund CEO Zafer Sönmez

Turkey Wealth Fund CEO Zafer Sönmez. Photo courtesy of PRNewsfoto/Turkey Wealth Fund.

Telia Company, a Swedish telecommunications company, is selling its 24.02% indirect stake in Turkcell for $530 million in a move o exit the latter.

On the other hand, LetterOne, a Luxembourg-based investment business, will increase its ownership and acquire a direct minority interest of 24.8% in Turkcell through a restructuring of its current interest in the Turkish telecoms and technology company.

The transactions will result in the effective termination of the Turkcell Holding joint venture with Turkish communication company Çukurova Holding also exiting its indirect interest.

Zafer Sönmez – Turkey Wealth Fund CEO and Board Member said: “As consumers and businesses increase their reliance on data, connectivity and technology in the post-pandemic world, Turkcell has an incredible potential to capitalise on this trend.

“Our objectives are to implement a solid value creation plan for the shareholders of Turkcell and achieve best-in-class corporate governance standards. We intend to support Turkcell management in its focus on innovation and their strategic initiatives such as infrastructure while the company continues its pioneering role in product and services innovation.

“We strongly believe that Turkcell will remain as a performance driven entity and its financial results will be positively affected with our contribution through resolving the decades-long shareholder governance issues.”

The closing of the transactions is likely to place during the second half of this year, subject to regulatory clearances and other approvals.

Related posts