Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  ISTANBUL STOCK EXCHANGE  >  Turk Telekomunikasyon A.S.    TTKOM   TRETTLK00013

TURK TELEKOMUNIKASYON A.S.

(TTKOM)
  Report  
SummaryNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Lenders poised to take control of Turk Telekom

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/23/2018 | 10:47am EST

LONDON (LPC) - Banks are set to take majority control of Turk Telekom in a debt restructuring that will see them take over Turkish holding company Otas, which owns a 55% stake in Turk Telekom, banking sources said on Wednesday.

A co-ordinating committee of the lenders has agreed a restructuring plan, which will be presented to the wider lender group at a meeting this week, one source close to the situation said.

“Lenders will hold a bank meeting to agree the deal which will be implemented in June,” the source said.

Otas, which was set up by Dubai headquartered Oger Telecom in 2005 to buy the stake in Turk Telekom, has failed to make at least three $290m (217.3 million pounds) loan repayments since September 2016 on a US$4.75bn loan.

Otas has struggled to repay the loan due to the depreciation in the Turkish lira. Both Oger Telecom and Turk Telekom raise revenue in lira, which is then converted into US dollars.

Rating agency Standard & Poor’s warned on Tuesday of growing concern that the weakening lira could “potentially” cause a further downgrade of its BB- rating of Turkey's sovereign debt.

In a media statement on Tuesday, Turk Telekom said that no official notification has been made to it on the process or outcome of the plan.

“In the event of an official notification to our company on this matter, the public will be promptly informed within the scope of the related legislation,” Turk Telekom said.

LOAN TO OWN

Otas signed a US$4.75bn loan in May 2013 with a group of local and international banks, which was Turkey’s largest corporate loan at the time. Shares in Turk Telekom were pledged as collateral against the loan.

Negotiations around a potential sale or a loan restructuring began over a year ago. Saudi Telecom Company and Qatari telecom company Ooredoo initially stepped forward as rival bidders, but the focus is now on restrucuring.

Under the restructuring plan, lenders will take control of Otas and its underlying 55% stake in Turk Telekom before reinstating the US$4.75bn of loans, with a view to selling the Turk Telekom stake, the source said.

“No one lender will be in control,” he said.

Oger Telecom did not reply to a request for comment. Construction company Saudi Oger, Oger Telecom's controlling shareholder, closed in July 2017 amid a slowdown in Saudi's construction sector and delays in government payments.

Saudi Telecom Company, which acquired a 35% stake in Oger Telecom in 2008 from Saudi Oger, did not respond to a request for comment.

The loan was underwritten and arranged by mandated lead arrangers and bookrunners Akbank, BNP Paribas, Citigroup, Deutsche Bank, Garanti Bank and JP Morgan.

A further 23 banks joined in syndication, who will become joint owners going forward if the restructuring plan is agreed.

Restructuring advisers Houlihan Lokey has been mandated by Otas to advise on the situation, while lenders have appointed Lazard.

Lazard and Houlihan Lokey declined to comment.

(Editing by Tessa Walsh)

By Sandrine Bradley

Stocks mentioned in the article
ChangeLast1st jan.
BNP PARIBAS -0.06% 50.26 Real-time Quote.27.32%
OOREDOO 2.88% 7.14 End-of-day quote.-4.74%
SAUDI TELECOM COMPANY SJSC End-of-day quote.
TURK TELEKOMUNIKASYON A.S. End-of-day quote.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TURK TELEKOMUNIKASYON A.S.
2018Turkish firms face debt-servicing crunch as lira spirals lower
RE
2018Lenders poised to take control of Turk Telekom
RE
2017TURK TELEKOMUNIKASYON : 30 June 2017 dated Regulatory Disclosure - Registration ..
PU
2017TURK TELEKOMUNIKASYON : 23 June 2017 dated Regulatory Disclosure - Update regard..
PU
2017TURK TELEKOMUNIKASYON : 6 April 2017 dated Regulatory Disclosure - Update regard..
PU
2017TURK TELEKOMUNIKASYON : 6 April 2017 dated Regulatory Disclosure - Appointment o..
PU
2017TURK TELEKOMUNIKASYON : 3 April 2017 dated Regulatory Disclosure - Long Term Loa..
PU
2017TURK TELEKOMUNIKASYON : 18 April 2017 dated Regulatory Disclosure – Senior..
PU
2017TURK HAVA YOLLARI AO : Turkey's Sovereign Wealth Fund Seeks International Invest..
DJ
2017TURK TELEKOMUNIKASYON : 8 February 2017 dated Regulatory Disclosure - Guidance f..
PU
More news
Financials (TRY)
Sales 2019 23 535 M
EBIT 2019 6 193 M
Net income 2019 2 389 M
Debt 2019 15 421 M
Yield 2019 -
P/E ratio 2019 10,5x
P/E ratio 2020 7,54x
EV / Sales2019 1,71x
EV / Sales2020 1,49x
Capitalization 24 920 M
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 17
Average target price 6,93  TRY
Last Close Price 7,12  TRY
Spread / Highest target 26,4%
Spread / Average Target -2,71%
Spread / Lowest Target -36,8%
EPS Revisions
Managers
NameTitle
Ümit Önal Chief Executive Officer & AGM-Marketing
Ömer Faith Sayan Chairman
Kaan Aktan Assistant General Manager-Finance
Yusuf Kiraç Assistant General Manager-Technology
Yigit Bulut Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
TURK TELEKOMUNIKASYON A.S.4 209
VERIZON COMMUNICATIONS7.67%250 339
NIPPON TELEGRAPH AND TELEPHONE CORPORATION24.61%93 280
DEUTSCHE TELEKOM AG1.43%79 051
SAUDI TELECOM COMPANY SJSC--.--%49 600
BCE INC.17.82%43 699