Telecom Italia: Agreement with Turk Telekom to sell 40.5% stake in Avea for 500 million dollars

07/14/2006 - 11:55 PM

- + Text size
Print

The Telecom Italia Group will reinvest $250 million in the capital of Oger Telecom, reinforcing its participation in the holding which controls 
Turk Telekom

At Group level, the transaction will reduce Telecom Italia’s net financial debt by $250 million.

Operation foreseen in the agreements with Oger Telecom when Turk Telekom was privatized

Telecom Italia today signed a contract for the sale to Turk Telekom of its 40.5% shareholding in AVEA, held by subsidiary TIM International, for a total price of USD 500 million.

With the acquisition, Turk Telekom, which already holds 40.5% of Avea’s capital, will increase its stake to 81%, with the remaining 19% owned by IS Bank.

The Telecom Italia Group is reinvesting half of the proceeds from the sale ($250 million) in the capital of Oger Telecom - in which it currently holds 13% - which, as well as 55% of Turk Telekom also controls Cell C (South Africa’s third mobile operator) and Cyberia, a leading internet provider in Saudi Arabia, the Lebanon and Jordan.

At Group level, the transaction will reduce Telecom Italia’s net financial debt by $250 million.

The agreement, which was signaled last year when Telecom Italia, together with Saudi Oger, placed the winning bid for the privatization of 55% of Turk Telekom, will become effective when all the necessary approvals, including those of the relevant Turkish authorities, have been obtained.