Turk Telekom is likely to boost its stake in mobile operator Avea to about 90% via a capital increase.
The Turkish incumbent said Avea shareholders, who also include six Isbank Group companies, decided at an extraordinary general assembly meeting to…
Turk Telekom is likely to boost its stake in mobile operator Avea to about 90% via a capital increase.
The Turkish incumbent said Avea shareholders, who also include six Isbank Group companies, decided at an extraordinary general assembly meeting to strengthen the loss-making mobile operator’s share capital. As yet, however, only Turk Telekom has agreed to participate in the capital increase, contributing an issue premium of TL1.08bn (US$615.6m).
If the other shareholders decide not to participate, Turk Telekom intends to use their preemptive rights as well. A Turk Telekom spokesperson told TelecomFinance that this would increase Turk Telekom’s stake in Avea from 81.37% to about 90%.
In its statement, Turk Telekom said four of the six other shareholders have stated they will not participate in the increase. Trakya Yatirim Holding and Efes Holding are still to confirm their participation.
Turk Telekom will convert loans it has granted to Avea directly into equity, the statement added.
Prior to the capital increase, Turk Telekom said shareholders have agreed to reduce Avea’s share capital of TL7.12bn (US$4.06bn) by TL3.3bn (US$1.88bn) to help eliminate past losses. Avea shareholders will then inject TL3.3bn (US$1.88bn) in cash into the company and Turk Telekom will add its TL1.08bn (US$615.6m) premium.
“This is a good development for Turk Telekom Group as it will strengthen our mobile arm Avea’s balance sheet and capital structure,” the Turk Telekom spokesperson said.