Oger Telecom to borrow $4.3bMenafn writes…Khaleej Times reported that Oger Telecom, which is a part of Saudi Telecom, will raise $4.3 billion through a loan in order to finance the acquisition of 55 percent of Turk Telecom.
Resources said that after Oger already paid 20 percent of the total cash in two installments in 2005, the remaining payment will be delivered over a five-year period in equal installments with an interest rate of Libor plus 2.5 percentage points. The mandated lead arrangers according to sources agreed to acquire a 55 per cent stake in Türk Telekom for $6.5 billion from the Turkish government.
Buying Turk Telecom will enable Oger to finance the final payments and refinance the earlier two installments.
In November 2005, Oger telecom canceled an IPO through which it was planning to raise $1.25 billion due to the poor performance of Gulf markets.
Resources at the Turkish Treasury said that it was intending to sell the remaining 45 percent of Turk Telecom through an IPO. However, the treasury hasn’t yet announced the date for that move.
