Cellular network operator Cell C says it will benefit from the acquisition of 55% of T"urk Telekom by its majority shareholder, Oger Telecom.
Oger Telecom, a wholly owned subsidiary of Saudi Oger, heads the consortium - with Telecom Italia - that recently won the bid for the Turkish company, which manages 19 million fixed-line and six million mobile subscribers.
The consortium won the bid through an auction that was shown live on television. It offered $6.55 billion for the stake, $50 million more than the sum offered by runner-up Etisalat Calik Consortium, of the United Arab Emirates.
Paul Doany, MD of Oger Telecom, says Oger will now control a total of about 28 million fixed and mobile lines. In addition to a 60% stake in Cell C, it also has joint venture operations in Romania and Portugal, and Internet businesses in Lebanon, Jordan and Saudi Arabia.
However, Oger cautions that anti-privatisation parties in Turkey are expected to challenge the deal and there have been cancellations of privatisation plans in the past.
The auction was the Turkish government`s seventh attempt in the past 10 years to sell the telecoms company.
The previous attempts were scuppered after strong protests by trade unions and even the Turkish defence force, which was opposed to the idea of the sale of a state asset to a foreign company.
Cell C CEO Talaat Laham says the acquisition means Oger Telecom now represents 30% of the total value of Saudi Oger.
"Cell C looks forward to leveraging economies of scale and the cross-pollination of ideas among the companies in Oger Telecom`s expanding fold," he adds.
Share