The three largest creditor banks of Turk Telekom’s parent company Ojer Telekomunikasyon AS (OTAS) have reached an agreement with the Turkish government to initiate legal proceedings which will result in a bank takeover of OTAS, according to the Daily Sabah, citing sources quoted by the Hurriyet newspaper. The report added that Turk Telekom shares rose rapidly following the news.
OTAS owns a 55% Turk Telekom stake, and itself is 99% owned by Dubai-based consortium Oger Telecom. 29 banks provided USD4.75 billion in loans to OTAS in 2013, secured on Turk Telekom shares, but OTAS has missed three loan repayments since September 2016. The three largest creditors – Akbank, Turkiye Garanti Bankasi and Turkiye Is Bankasi – have now reportedly agreed with the Ministry of Transport, Maritime Affairs & Communications to begin a legal process to take over the 55% stake, as an option seen as avoiding harm to Turk Telekom.
Note: Saudi Telecom Company (STC) owns 35.00% of Oger Telecom.