STC seeks bank extension over Türk Telekom-parent debt
A report from Reuters claims Saudi Telecom Company has intervened after Oger Telecom, in which it owns a 35% stake, missed another debt payment
Saudi Telecom Company (STC) has asked for an extension of debt payments relating to Türk Telekom parent Oger Telecom, in which it has a 35% stake.
According To Reuters, Oger has missed another debt repayment deadline on a $4.75 billion loan, prompting STC to ask banks for more time.
It is the third time Oger Telecom has missed repayments, after it did so in both September 2016 and March 2017, Reuters claims, citing unnamed sources.
Oger Telecom holds a 55% stake in Türk Telekom, although the financial issues earlier this year prompted rumours that STC was considering buying the stake outright, becoming the majority shareholder in the Turkish operator.
The request for an extension is now under consideration by Oger’s creditors, the report adds, along with the Turkish treasury. The Turkish government could also intervene should STC choose to bid for Türk Telekom.