Are Calik Group and Turk Telekom withdrawing from Albania?

THE SALE OF THE ALBANIAN state telecommunication company, ALBtelecom, one of Turkey’s first investments in Albania, is on with the U.S.-based consultancy firm Ernst & Young (EY) said to be authorized for the sales. Moreover, the Hungary-based telecommunication firm 4iG is one of two companies interested in ALBtelecom.

ALBtelecom was established in 1912 after the Independence of Albania and was acquired by the consortium of Calik Group and Turk Telekom. 76% of the company’s shares were sold by the Albanian government to the Calik Group and Turk Telekom’s joint venture, CT Telecom, for EUR 120m in 2017.

One of three telecommunication companies, along with Vodafone and One, ALBtelecom was included in the scope of privatization by the Tirana government. The process was completed in 2005 when CT Telecom offered the highest price. The sale price was substantial for the Albanian government, representing the biggest one-time foreign direct investment in the country. 80% of the consortium that acquired ALBtelecom is owned by Calik Enerji subsidiary operating in the telecommunication industry, CETEL, while the remainder belongs to Turk Telekom.

ALBtelecom, which is one of Albania’s oldest companies and serves as the country’s largest fixed line operator in electronic communication, fixed and mobile internet access, Internet Protocol Television (IPTV) and information technologies, has had financial difficulties in recent years according to the Albanian press. The company lost 16% of its revenues in 2020, compared to the previous year. Calik Group and Turk Telekom started considering sales opportunities to transfer their shares. The Albanian press also said the parties agreed with EY for the transaction. Another claim is that Calik Group and Turk Telekom are holding talks with two companies, one of which is 4iG.

TURKISH INVESTMENTS TOTAL USD 1BN

Calik and Turk Telekom ‘took their first journey’ to Albania 14 years ago. Turkish assets in the country rose to USD 1bn over the subsequent years with the participation of many companies, notably the flagship carrier Turkish Airlines. Bilateral foreign trade between Turkey and Albania hovers around USD 500m after the Free Trade Agreement (FTA) entered into force in 2008. The value of 31 projects completed by Turkish contractors in Albania amounts to USD 1.8bn, one of the target countries for Turkey. From this point of view, will the withdrawal of Turk Telekom and Calik Group ,managed by the Hariri Family, affect other investments? We will see…