Turk Telekom

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On July 1, 2005, the Turkish Privatization Administration (OIB) divested 55% of its stake in the country’s national fixed line operator Turk Telekom. OIB sold the stake for $6.55 billion to Italian – Saudi consortium Oger Telecom. Turk Telekom was the world's 13th largest fixed line telecom operator, with 19 million subscribers. The company did not have a legal monopoly on fixed line communications in Turkey, but in practice accounted for the entire fixed line market. In addition, the company had a 40.5% stake in the country’s third largest mobile operator – Avea. In June 2006, the company agreed with Telecom Italia to purchase their 40.5% stake in Avea for USD500 million. Thus, Turk Telekom’s share in Avea increased to 81%. The formal tender process for the block sale of 55% of Turk Telekom commenced with the tender announcements on November 25, 2004. Four bids were submitted after a detailed due diligence process in which the Tender Committee evaluated the business plans of all bidders. The opening of the financial bids took place on July 1st, 2005. After the joint bargaining process, Oger Telecoms Joint Venture Group submitted the highest bid, with $6.55 billion. The result of the tender was approved by the Council of Ministers and published in the Official Gazette dated 02.08.2005. Oger Telecoms Joint Venture Group and the Governement signed the Share Sale and Purchase Agreement on 24 August 2005. The draft concession agreement was initialed by Turk Telekom and the Turkish Telecommunications Authority as per the tender process, The Council of State gave its opinion about the draft concession agreement on 21th. October 2005. The transaction was closed on November 14th, when Oger Telecom paid a first instalment of $1.3 billion to the Turkish Treasury. This led to the signing of the Shareholders Agreement and Share Pledge Agreement on November 14, 2005. Oger Telecom committed to pay the remaining sum in five equal installments at an interest rate of Libor plus 2.5 percent over five years. As of end-2005, Turk Telekom was owned by Oger Limited (55%) and the Turkish government (45%). Oger Telecom was a joint venture created by Saudi-Lebanese group Saudi Oger Limited (82.67) and Telecom Italia (13.33%). The Italian company’s stake was held through through TIM International, which also had a 40.5% stake in Avea – one of Turkey’s three mobile operators. In May 2008, the Turkish Privatization Administration (OIB) held an initial public offering (IPO) of 15% of Turk Telekom's equity, corresponding to 525,000,000 shares. 210,000,000 of these shares were sold to domestic investors, while 315,000,000 shares were sold to foreign institutional investors. At a price of 4.6 YTL per share, the IPO raised YTL2.42 billion (US$1.9 billion) for the government, making it the largest IPO in Turkey's history. On May 15, 2008, Turk Telekom began trading on the Istanbul Stock Exchange. As of end 2008, 55% of Turk Telekom's equity was owned by Oger Limited, 30% was owned by the government, and 15% was publicly traded. 2011 subscriber info http://www.ttinvestorrelations.com/financial-operational-information/fact-sheet.aspx 2014 capex from AR 2014 2012 and 2013 TRY/EUR exchange rates from ECB website. 2013 Capex from AR2013. 2012 and 2011 Capex figure from 2011 Annual report - only for fixed line operations http://www.ttinvestorrelations.com/financial-operational-information/quarterly-results.aspx 2012: TL 1,972 million (imf fx rate 1 USD = 1.78 TL)