Turkcell seeks foreign partners for its subsidiaries

Turkcell seeks foreign partners for its subsidiaries

Sefer Levent - LAS VEGAS
Turkcell seeks foreign partners for its subsidiaries

Turkcell is seeking strategic foreign partnerships for its subsidiaries, CEO Murat Erkan told daily Hürriyet during the Consumer Electronics Show (CES) in Las Vegas.

“We have opened up our subsidiaries Paycell, Bip and Superonline to investors. Funds from the United States, Asia and the Middle East have shown interest in our companies. We are not looking for financial investors, but partners to speed up expansion abroad,” he said.

Shares up to 10 percent could be offered to foreign partners in the upcoming months, Erkan added.

Despite lower turnout because of the COVID-19 pandemic, CES 2022 provided new opportunities for future collaborations, Erkan said.

Turkcell has authorized U.S. finance giant JP Morgan to find investors for its payment processing company Paycell. Talks are ongoing with about 10 potential investors.

Turkey’s prominent mobile operator and digital giant is also considering new investments in gaming industry and blockchain technology.

“It could be through partnerships, acquisitions, or investments in unicorns [innovative private companies valued at over $1 billion],” the Turkcell CEO said.

Meanwhile, Turkcell’s share in the electric car project Turkey’s Automobile Initiative Group (TOGG) rose from 19 percent to 23 percent. TOGG was established in 2018 under the leadership of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) by companies of Anadolu Group, BMC, Root Group, Turkcell and the Zorlu Group.

TOGG showcased a sedan model during the CES. Last month, it announced that the installation of its assembly line had started in its factory in the northwestern province of Bursa’s Gemlik district. Trial production will start at the end of July 2022 and the first mass-produced vehicle will be ready at the end of 2022.

Turkcell raked in 9.4 billion Turkish Liras ($678.1 million) in the third quarter of 2021, up 22.3 percent year on year.

The company is now planning to provide fiber internet access for 110,000 households with an investment of 270 million liras ($194.7 million). After this investment, Turkcell’s fiber network will reach 53,000 kilometers.

Turkcell, which is listed on the New York Stock Exchange, has restructured its digital services into separate companies to allow easy access for investors.