Latest News in TT Privatization

Council of Ministers’ Resolution dated November 13th, 2003 on sale of Turk Telekom’s shares is published on today’s Turkish Official Gazette (Resmi Gazete). In the resolution, with respect to Turk Telekom’s privatization, it says:

“It is resolved that

• The value corresponding to the total of company shares shall subject to the approval of the Council before the tender receiving date, under the process of the arrangements required in company’s administrative and financial structure by the resolution of Valuation Commission,
• At least 51% of the company shares shall be sold out as a block at once,
• In order to make the block transaction, the tender advertisement shall be publicized till May 31st, 2004,
• Tender process for the block transaction method shall be specified by the Tender Commission under the Act 4046 of 24.11.1994,
• Share rate and timing of the shares to be offered to the public shall be determined after the block transaction and be subject to Ministers’ Council’s approval,
• When offering the shares to the public, the 5% part of the company shared mentioned in the Avt 406 of 4.2.1924 shall be sold to Posting & Telegram Administration and its employees and as well as minor savers, be sold by offering to public in national capital markets, where any facility such as installments, pump priming, discount and credit card payment etc.”

HOW ABOUT THE TENDER FOR PROVIDING A CONSULTANT FIRM?

Metin Kilci, Head of Privatization Administration has announced that they would make a co-operation with the Institution of Public Tender (KIK) for providing a consultant firm with regard to the privatization of Turk Telekom. In his announcement in October, he had told that they needed a consultant firm in major privatizations, provision of a such firm would take at least 4-5 months and they had begun endeavors with KIK to shorten the period of the process. As no tender for a consultant firm has been conducted by the Administration of Privatization yet, it must be added to the privatization process of Turk Telekom’s privatization. Therefore, it is mostly estimated that the process would not finalize by the end of the May.

Experts are of the opinion that the valuation and the implementation for the consultant firm will not be finalized by the end of May even if the respective tender and its conclusion lasts a month, considering the best possibility.