Turk Telecom Seeking Funding for Mobile Network Subsidiary

­Turkish landline operator, Turk Telecom has started negotiations with the banks in order to secure the funding it will provide to its mobile network operator subsidiary Avea, as part of the restructuring of Avea's long term financial liabilities.

In a brief statement the company said that terms of the funding has not been specified yet.

Banking sources close to the deal told Reuters that the company was seeking a US$600 million, three-year syndicated loan.

According to the latest statistics from the Mobile World analysts, Avea ended the first half of the year with 12.4 million customers and a market share of just under 20%.

Avea is 81% owned by Turk Telekom and remaining 19% by Is Bankasi. Turk Telekom itself is controlled by Dubai-based Oger Telecom, with 30% of its shares held by the govenment, and 15% listed on the local stock market. Avea recently named Erkan Akdemir as its new CEO, replacing Cüneyt Türktan who had held the post since 2006.

On the web: Reuters - Mobile World

Posted to the site on 11th September 2009