Turkcell to acquire large stake in Belarusian telecomms company

Jul 30, 2008 (TELECOMWORLDWIRE via COMTEX) -- TKC | Quote | Chart | News | PowerRating -- Turkcell (NYSE:TKC) (ISE:TCELL), a mobile telecomms operator in Turkey, has announced the signing of an agreement to purchase an 80% stake in the Belarusian telecomms operator Belarusian Telecommunications Network (BeST).

The company is buying the stake in BeSt from the Berlarusian State Committee on Property for a total of USD500m, which will be paid in three tranches.

The first USD300m tranche will fall due on the closing date for the transaction, which is expected to be 30 days after the signature date. Further tranches of USD100m will be paid on 31 December 2009 and 2010 respectively.

An additional payment of USD100m will be paid when BeST records a full-year positive income for the first time.

BeSt is the third largest mobile telecomms operator in Belarus with a 65% coverage of the population, according to the announcement from Turkcell. Turkcell predict BeST will require capital investment to the tune of USD500m over the next ten years to turn the operator into a competitive player in the local market.