Turkcell calls annual meeting amid unsolved shareholder row

ISTANBUL

DAILY NEWS Photo

Turkish telecommunications giant Turkcell has called for its annual General Assembly to convene on May 29.

Analysts, however, doubt the company will pass any decision in this year’s meeting, as the shareholder dispute that has blocked operations for the past four years remains unsolved.

The company will meet to handle a number of issues, including the distribution of shareholder dividends, discussion of four-year operation reports and the acquittal of board members, according to a statement sent to the Public Disclosure Platform by the company in the late hours of March 26. The statement also noted that necessary procedures would be initiated for the amendment of the main contract.

The three-partnered company was not able to convene its 2010, 2011 and 2012 General Assemblies, recording six failed meeting attempts in a row over the past four years.

A long-running feud between Turkey’s Çukurova and Russia’s Altimo Group has prevented the approval of accounts and distribution of dividends. Çukurova is also in a dispute with the third and major stakeholder of the company, Swedish telecommunications giant TeliaSonera, making relations much more complicated and tense.

In a statement released after the announcement, Oyak Investment said the news could be interpreted as a signal that the accumulated dividends may be distributed, but warned that no progress had been made toward solving the dispute or the legal process.

“A finalization of the ongoing court process between Çukurova and TeliaSonera is still awaited. It would not be reasonable to expect dividends or a possible agreement,” the note read.

Altimo and Çukurova’s legal battle at the British Privy Council has not been concluded yet, as despite ruling that Çukurova Group must pay $1.57 billion within 60 days to Altimo to redeem Turkcell shares over a defaulted loan on July 9, the court is waiting for a separate case to be heard by the U.S. Court of Appeals.

The TeliaSonera-Çukurova case at the New York court has caused delays at the Privy Council in making a decision.