Oger Telecom, the majority shareholder in Cell C, has secured its 55% stake in Turk Telekom, the biggest telecommunications utility in Turkey.
The signing of the deal marks the final stage in the privatisation of Turk Telekom. Saudi-owned Oger is the majority partner in a consortium that includes Telecom Italia. The consortium will jointly operate Avia, the cellular arm of Turk Telekom.
The consortium offered $6.55 billion for the 55% stake in Turk Telekom, $50 million above the second highest competitor led by Etisalat Calik Consortium, after a highly contested auction.
Oger Telecom will be supported by British Telecom`s international consulting arm BT Telconsult, in management of Turk Telekom`s fixed-line business.
Commenting on Oger Telecom`s Turkish transaction, Cell C chairman and CEO, Talaat Laham, says: "This transaction, by our largest shareholder, demonstrates the scale and ambition of our parent group. Cell C can only benefit from access to the resources of such a large global telecoms group. In turn, this will enable us to ensure our customers continue to benefit from market leading products and services."
Jonathan Newman, Lahman`s advisor, says now the deal has been signed there will be an opportunity to work out the synergies that Cell C could leverage.
"But for now Cell C remains a South African focused telecommunications company," he says.
Turk Telekom is rated the 15th largest fixed-line company in the world and the 13th largest network capacity. It manages 19 million fixed-line subscribers and around 6 million mobile subscribers, with net income of over $1.1 billion a year.
The completion of the acquisition of the stake in Turk Telekom brings the number of fixed and mobile lines under Oger Telecom`s control to approximately 28 million. In addition to its 60% stake in Cell C and the new acquisition in Turkey, Oger Telecom has mobile joint venture operations in Romania and Portugal; and Internet businesses in Lebanon, Jordan and Saudi Arabia.
"The acquisition affords Cell C access to up to date market knowledge, and an opportunity to leverage economies of scale among the companies in Oger Telecom`s expanding fold," says Lahman.
Share
