Page 115 - SAMENA Trends - March-April 2022

REGULATORY & POLICY UPDATES SAMENA TRENDS

Turkey Wealth Fund Completes Turk Telekom Takeover

Turkey Wealth Fund (TWF) has completed while benefitting from the long-term the Borsa Istanbul (BIST). According to
its purchase of a 55% controlling stake opportunities the sector offers within the TeleGeography’s GlobalComms Database,
in Turkey’s dominant fixed network context of its investment in Turk Telekom, TWF-backed operators now dominate all
operator Turk Telekom (TT) from LYY one of the leading telecommunication Turkish telecoms sectors, as the state fund
Telekomunikasyon following the fulfilment companies in Turkey.’ Following already owns a controlling stake in Turkcell
of all requisite conditions and regulatory negotiations with LYY – a Special Purpose – Turkey’s mobile market leader and
clearances, raising the sovereign fund’s Vehicle (SPV) formed by a group of 29 second largest fixed broadband provider
total share in the telco to 61.68%. TWF banks – which began in December 2021, behind TT – as well as 100% of Turksat,
highlighted that the takeover forms the Share Purchase Agreement (SPA) the third-placed fixed broadband operator.
part of its mission to invest in domestic signed on 10 March set the purchase TT’s cellular subsidiary TT Mobil competes
strategic industries, declaring: ‘With its price for the 55% TT stake at USD1.65 very closely for the title of second largest
firm commitment to public interest, TWF billion. The Turkish Treasury continues mobile operator against Vodafone Turkey.
acts to contribute to the technological to hold a 25% TT stake plus special veto
development and transformation in Turkey power, with the remainder in free float on

MTN Granted Final Approval for Mobile Banking Services in Nigeria

MTN Nigeria has announced that the Central Bank of Nigeria (CBN)
has granted it final approval to provide mobile payment banking
services to its customers. In November last year MTN received an
approval in principle from the CBN to launch its planned MoMo
Payment Service Bank (PSB), but the latest go-ahead will allow
the firm to officially commence operations. Without providing
additional information, MTN said in a press release that ‘the
date of commencement will be communicated to the CBN in
accordance with its requirements,’ adding: ‘MTN Nigeria affirms
its commitment towards the financial inclusion agenda of the
CBN and the Federal Republic of Nigeria and we are excited at this
opportunity to support its fulfilment.’

NZ Regulator Clears 2degrees, Orcon Merger

A proposed merger of New Zealand-based and Orcon agreed to combine their local Tesbrit. The implied enterprise value of
mobile operator 2degrees and broadband operations in December 2021, creating an 2degrees reportedly equates to NZD1.7
provider Orcon Group won approval from operator with more than 1.5 million mobile billion ($1.1 billion). Orcon Group CEO
the market’s competition watchdog, and 345,000 fixed-line subscribers. The Mark Callander was appointed CEO of
paving the way for the creation of the third- merged company will operate under the the merged entity. In a statement, he
largest service provider in the country 2degrees brand and have 1,800 mobile noted the ComCom clearance is “the first
after Spark and Vodafone New Zealand. sites, offering 98.5 per cent population step in the regulatory approval process”
Sue Begg, deputy chair of New Zealand’s coverage. It will also swallow up what Begg for the merger. He stated the outcome
Commerce Commission (ComCom), stated described as the market’s largest MVNO, “recognizes that the merger will enhance
the regulator was satisfied the merger was which markets services under the Vocus competition and provide benefits to Kiwis
unlikely to substantially lessen competition brand. The deal followed Macquarie Asset and Kiwi businesses”. Vodafone claims a
in the country’s retail and wholesale Management and Aware Super, owners total of 2.4 million customers, while Spark
telecoms markets. She explained the of Vocus Group and its New Zealand reported 2.4 million mobile connections
merged entity “will continue to face strong subsidiary Orcon, signing an agreement and 702,000 broadband customers at end-
competition from existing competitors, to acquire 100 per cent of 2degrees from 2021.
including Spark and Vodafone”. 2degrees Trilogy International Partners (TIP) and

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