HomeNewsTurkey’s sovereign wealth fund looks to acquire 55% of Türk Telekom

    Turkey’s sovereign wealth fund looks to acquire 55% of Türk Telekom


    The fund’s outlook was downgraded to negative last week as it seeks the stake in the formerly state-owned incumbent.

    Türk Telekom’s shares rose almost 10% on Monday after Türkiye Wealth Fund began talks to acquire 55% of the telecoms company. The operator was formerly owned by the Turkish state and has about 51 million fixed, broadband and mobile customers.

    Sale and default
    In 2013, OTAS, a division of the Dubai-based Oger Telecom, took out a $4.75 billion loan to acquire 55% of Turk Telekom. It did not keep up repayments on what was then Turkey’s largest corporate loan.
    In 2018 a trio of banks acquired the stake, which is now held by LYY, a special purpose vehicle set up by those banks.
    The Türkiye Wealth Fund a $33 billion sovereign wealth fund set up in August 2016, owned by Government of Turkey to hold companies and assets formerly owned by state institutions.

    Outlook downgraded

    Last week Fitch revised its outlook on the Türkiye Wealth Fund to negative.

    Sahap Kavcioglu became CEO in February this year. According to the Financial Times [subscription needed] at the time of his appointment, he is “a little-known professor of banking” whose views on economics are at odds with mainstreaming thinking, but support with those of the beleaguered President Recep Tayyip Erdogan.
    The FT also stated, “Kavcioglu’s appointment is the latest act in a tumultuous political drama over the best way to manage the Turkish economy. He replaces Naci Agbal, a respected former finance minister brought in after his own predecessor was fired as the lira plunged.”