Friday, 03 September 2010
Home
| Tough TT |
|
|
| Monday, 28 April 2008 | |
|
Shares worth a billion dollars or more are up for grabs in the IPO of Türk Telekom. The sale has 'rollercoaster' written all over it.
The decision by Ankara to flog 15% of Turkey’s flag carrier is a risk: if the top asking price for a 10-15% stake is achieved, the sale would bring in €1.2bn, valuing the company at more than €7.5bn. A controlling 55% stake in Türk Telekom (TT) was sold to Oger Telecom and Telecom Italia for US$6.55bn back in 2005 (click here). The public offering of a portion of the state’s remaining stake is aimed for the most part at foreign institutions: 65% of the sale will be aimed at them with 35% reserved for domestic investors. That’s a gamble. Turkey’s domestic economy in general and its equity markets in particular have been struggling of late. Ankara is not certain that domestic investors could support the sale. Hence its appeal to foreign investors and a relatively low offer price. The gamble will fail if it transpires that those foreign investors have fallen out of love with Turkey and TT. We’ll know whether that’s the case are listed on the Istanbul bourse on 15 May. Jim Chalmers |
| < Prev | Next > |
|---|
|
|
|
|
|
|
|
|
|
|