15 percent gov’t stake in Türk Telekom to go public
Posted by meb at April 28th, 2008
Türk Telekom, the country’s land line carrier monopoly, has announced that it will make a public offering of a 15 percent stake of its state-owned shares.
Privatization Administration (ÖİB) President Metin Kilci and Türk Telekom vice general managers Erem Demircan and Celalettin Dinçer held a press conference yesterday regarding the public offering.
The book building process — the process of generating a book of investor demand for an initial public offering (IPO) for efficient price discovery — for the state shares will be held on April 28, 29 and 30. The subscriptions are scheduled to be collected after the Capital Markets Board (SPK) approval on May 7, 8 and 9. The shares are expected to be traded on the stock market on May 15, subject to the approval of the İstanbul Stock Exchange (İMKB) executive board. During the initial public offering 15 percent of shares, which are worth around YTL 525 million, will be sold. The current equity capital of Türk Telekom is YTL 3.5 billion. Moreover, there is a possibility the company will offer an additional 2.25 percent stake, equal to YTL 78.7 million.
Of the total shares that are going to be offered to the public, 30 percent will be allotted to Türk Telekom employees, Postal and Tele-communications General Directorate (PTT) workers and small investors, 3 percent to personal investors and 2 percent to domestic corporate investors. The remaining 65 percent will be open to purchase by foreign investors.
The price range per share is set between YTL 3.9 and YTL 4.7. Türk Telekom sold a 55 percent majority stake to Oger Telecom in a block sale privatization in 2005; the remaining 45 percent remained under state control.
source: Today’s Zaman
Kilci said that despite criticism highlighting the poor current market conditions, they were confident in the Turkish market and determined to proceed with the public offering.
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