Russian tycoon could take control of Turkcell: Source

November 22, 2016 1:02 pm

iPhone smartphone displaying logo of Turkcell, Turkeys leading mobile phone operator. (Image: Alamy)

* Russian billionaire Mikhail Fridman could take control of Turkcell after fellow shareholder Cukurova failed to declare an intent to buy

Alfa Group locked in decade-long dispute for control of Turkey’s top mobile operator with Cukurova

Alfa now has right to buy Cukurova’s stake by November 28

 

Russian billionaire Mikhail Fridman could take control of Turkcell after fellow shareholder Cukurova failed to declare an intent to buy a disputed 13.2 per cent stake by a court deadline, a source close to the matter said on Monday.

 

Fighting for control

Alfa Group, part of Fridman’s business empire, has been locked in a decade-long dispute for control of Turkey’s top mobile operator with equity partner Cukurova, run by Mehmet Emin Karamehmet, Turkcell’s founder and one of Turkey’s richest men.

The dispute has prevented some dividends from being paid and has hampered Turkcell’s development.

A London tribunal had set a deadline of November 18 for Cukurova to choose to either buy Fridman’s shares for $2.7 billion or sell its own stake to Fridman for $2.8bn.

 

Buy option

“No declaration was made by the Friday (deadline). Now in line with the court decision, the option of buying has moved to Alfa,” the source said, declining to be named because none of the parties involved have yet commented on the matter.

Fridman indirectly holds 13.2 per cent of Turkcell, while Karamehmet indirectly holds 13.8 per cent. Swedish phone carrier Telia Company owns 37 per cent.

The source said that under the terms of the London tribunal ruling, Alfa now has the right to buy Cukurova’s stake in Turkcell by a deadline of November 28.

Cukurova did not respond to requests for comment. Alfa Group could not immediately be reached for comment. Turkcell has said in the past that the dispute is between its shareholders and has declined to comment.

Tags:

By Reuters
A division of Thomson Reuters, Reuters is an international news agency headquartered in London, England, and provides up-to-the-minute news and views on global and regional events.



AMEinfo EXPERTS