UK court says Çukurova must pay $1.565 billion to redeem Turkcell shares

ISTANBUL - Hürriyet Daily News

Because of the dispute Turkcell has failed to hold an annual general meeting for the sixth time due to a long-running dispute between three major shareholders. DHA Photo

Britain’s Privy Council ruled on today that Turkey’s Çukurova Group must pay $1.565 billion within 60 days to Russian telecoms firm Altimo to redeem Turkcell shares over a defaulted loan, in a step to end an eight-year dispute between major shareholders.

Turkcell shares rose 3.57 percent after the ruling.

British court had ruled in January that Altimo had been entitled to appropriate shares in Turkcell from Çukurova over a defaulted loan, but it could not yet give any compansation amount.

The row centres on Çukurova’s 13.8 percent stake, which is a controlling stake due to the shareholder structure and which Altimo seized when Çukurova defaulted on a $1.35 billion loan eight years ago.
Altimo separately owns 13.2 percent of Turkcell.

Turkcell’s parent company Çukurova Telecoms Holding is registered in the British Virgin Islands, which is why the case is being dealt with by the Privy Council - the final court of appeal for many Commonwealth countries and overseas territories.

Because of the dispute Turkcell has failed to hold an annual general meeting for the sixth time due to a long-running dispute between three major shareholders.