RIYADH, 26 August 2005 — A major contract for the sale of a 55 percent stake in fixed-line operator Turk Telekom was signed in Turkey yesterday. Oger Telecom, part of the Riyadh-based Saudi Oger group with substantial business presence in many foreign countries, signed the agreement with Turkish government to acquire the stake at a value of $6.55 billion.
On behalf of Turkey, the share sale agreement was signed by Turkish Minister of Finance Kemal Unakitan. Mohammed Hariri, senior vice president and chief financial officer of Saudi Oger, represented the Oger Telecom and inked the deal. The signing represents a significant step forward in the privatization, but closing the sale is still subject to Council of State opinion on Turk Telekom’s concession agreement.
Speaking on this occasion, Hariri said: “We are fully committed to this investment and are confident of our ability to build value to all stakeholders including the management of Turk Telekom, its employees, its customers and to the public at large.” A venture led by Saudi Oger Telecom and including Telecom Italia won a tender on July 1 this year offering $6.55 billion for a 55 percent stake in Turk Telekom.
Referring to the preparedness of the company, Dr. Paul Doany, Oger Telecom’s managing director said: “The company’s experts and specialists are working hard in all aspects including detailing the business, technical and commercial plans, while finalizing the operational plan well in advance.”
“Our joint team with BT Telconsult (British Telecom’s consultancy arm) is focusing on the fixed line business including new technology, products and services,” said Doany.