Turk Telekom bids to take ownership of Avea
Turk Telekom has offered to acquire the remaining $300 million stake in Turkish mobile operator Avea in order to gain sole control of the mobile unit.
Turk Telekom presently owns 90% of Avea, with the rest held by IS Bank and other investors.
The operator did not reveal how much it has offered for the stake, which it said had a “nominal value” of $300 million (820 million Turkish lira).
Securing the remaining stake in the struggling unit would avoid Turk Telekom having to float Avea, according to a report by Reuters.
Under a 2006 shareholder agreement, IS Bank has the right to call for an initial public offering (IPO) this year. However, a flotation would likely be impacted by Avea’s weak earnings, according to analysts.