Buy -Sell

·         NATURAL GAS PRICES > Energy Minister says gov’t is not considering an increase in NG prices in Feb, according to Milliyet. Says no factors pushing prices up in Jan. We don’t expect a major change until Apr, when household consumption of NG diminishes and the gov’t usually adjusts prices.

 

·         TCELL - COURT RULING > Privy Council will announce its decision on the dispute btw Cukurova and Alfa re the ownership of 13.8% indirect controlling stake of Tcell => tdy @ 12:15 pm local time => will be final decision - there can be no appeal after this. TR Telco Regulator restated that any share transfer would be subject to its approval and that they have the right to cancel the contract, if the acquirer of the mentioned stake does not comply with the requirements in time. Cukurova wins => +VE S/T =>, divi distribution can be done asap we think. Alfa wins => might take longer => Telco Regulator has frequently cited its wish for Tcell to remain a “TR Co”. In both cases, election of independent board members will be an uncertainty for some time. A win for Cukurova also means the risk of mgmt chg is lower. On the other hand, a possible tender call in case Alfa wins (if there is no exemption given) would act as a d/side protector. A new TR partner for Alfa (assuming it wins) might also be a solution.      

 

·         HALKB (HOLD, TP TL21.30) & AKBNK (HOLD, TP TL10.76) > Reportedly, Halkbank issued $750m of 7-yr Eurobonds with a yield of 4% (mid-swap + 255bp) while Akbank’s 5-yr TL bond issue is expected to yield c7.6%, c.120bp above the TL gov’t security with the closest maturity. If realised at this cost, Akbank’s issue is quite favourable, being even a tad below the typical TL deposit cost of c7.7% but with a 5-yr maturity vs. the 2-mth avg for deposits.