Turk Telekom: OTAS out, banks in – what’s next? (stays BUY)
Following the recent takeover of the 55% Turk Telekom (TT) stake, owned previously by OTAS, by an SPV set up by OTAS’ creditors, we revisit our investment thesis and valuation model for TT, maintaining our BUY rating, but lowering our price target (PT) to TRY 6.24. We believe the recent change in control has finally eliminated the uncertainty over TT’s ownership, which has prevailed since September 2016 (OTAS’ default), and realigned the interests of the major shareholders (the Turkish government and Turkish banks) with those of TT’s minorities: restoring TT’s dividend payment capability and enhancing its valuation prior to its ultimate resale to a strategic investor. Considering TT’s strategic importance for the Turkish government, we expect the government to remain supportive of the new ownership structure and its eventual exit plan, while TT’s management is focusing on the execution of its long-term transformation strategy for the company.Turk Telekomuniksayon is an integrated telecommunications company in Turkey. Co.'s principal activities include the provision of local, national, international and mobile telecommunication services, internet products and services, as well as call centre and customer relationship management, technology and information management. Co. has service network and product range in the fields of individual and corporate services. Co. provides services in all 81 cities of Turkey. Co. has two main segments; fixed line and mobile. As of Dec 31 2015, Co. had 12.9 million fixed access lines, 8.0 million broadband and 17.3 million mobile subscribers.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.