Turkish banks apply to Competition Authority to take over 55 pct of Türk Telekom

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Akbank, Garanti and İşbank have applied to Turkey’s Competition Authority (RK) to take over 55 percent of Türk Telekom, Reuters reported, citing a Thursday statement from the competition watchdog. 

The 55 percent stake is owned by Dubai-based Oger Telecom, which has failed to keep up payments on a $4.75 billion loan it took out in May 2013 to acquire a stake in the Turkish fixed-line operator. 

The banks applied to take over the majority stake via a special purpose vehicle (SPV), the watchdog also said. 

The three banks declined to comment.

In May sources told Reuters that the creditor banks were set to take majority control of the company as part of a debt restructuring. 

Türk Telekom shares were trading up 5.68 percent after the competition regulator’s announcement. 

Among Oger Telecom’s creditor banks, Akbank extended $1.7 billion, Garanti some $1 billion and İşbank around $500 million, according to the banks’ first-quarter financial statements.

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