Turkcell to acquire 80% of Belarus’ BeST

Turkey’s largest mobile operator Turkcell is to acquire an 80% stake in state-owned BeST (Belarusian Telecommunications Network) for $500 million.

Turkcell will pay $300 million up front followed by two further payments of $100 million at the end of 2009 and 2010, respectively. An additional $100 million will be paid when BeST records a full-year positive net income for the first time.

Also under the deal, Turkcell will invest $500 million in the network over the next ten years in order to “transform BeST into a competitive player in the Belarusian market.” The acquisition is subject to regulatory approval.

According to Turkcell’s sources, penetration in Belarus was approximately 65% in 2007, suggesting reasonable potential for market growth. BeST had 987,289 subscribers by Q2 2008, trailing market-leader MTS Belarus (4.1 million) and second-placed Velcom Belarus (3.2 million).

[Via: MarketWatch]