Turkcell (IST:TCELL) is looking to buy TeliaSonera (STO:TLSN) out of their Eurasian venture Fintur and has initiated a process to hire a strategic and financial adviser.
Turkcell (IST:TCELL) is looking to buy TeliaSonera (STO:TLSN) out of their Eurasian venture Fintur and has initiated a process to hire a strategic and financial adviser.
Yesterday, TeliaSonera said it intended to offload its Eurasian assets to refocus on its European operations.
The Swedish telco holds majority stakes in four of its Eurasian subsidiaries – Azerbaijan (Azercell), Georgia (Geocell), Kazakhstan (Kcell), and Moldova (Moldcell) – through Fintur, in which it owns 58.55%.
The remainder of Fintur is held by Turkcell, in which TeliaSonera directly and indirectly owns 38%.
Turkcell said taking over Fintur was in line with its regional growth strategy.
Elsewhere, Turkcell has signed a loan agreement with BNP Paribas, Citigroup, HSBC, ING
The five-year credit line, split roughly between US dollars and euros, will be used to fund infrastructure investments and “any other potential investment opportunities”.
It carries an interest rate of average LIBOR/EURIBOR rate reset every three months plus roughly 2%.
Turkcell also pointed to S&P improving its rating on the operator’s debt profile. The ratings agency upped Turkcell’s investment grade from BB+ to BBB-.
The operator said: “The upgrade primarily reflects the improvement in Turkcell’s corporate governance, fully
functioning and effective decision making structure of its board of directors and clearly set long-term financial policy targets.
“S&P believes Turkcell will maintain its leading position and profitability in the future due to its superior network quality, strong spectrum position and reach, as well as its established brand.”