Turkcell shareholders have approved a TRY3.925bn (US$1.5bn) dividend payment at the mobile operator’s first AGM since 2010, preventing the country’s capital markets board (CMB) from stepping in to take decisions in their place.
The Istanbul-based…
Turkcell shareholders have approved a TRY3.925bn (US$1.5bn) dividend payment at the mobile operator’s first AGM since 2010, preventing the country’s capital markets board (CMB) from stepping in to take decisions in their place.
The Istanbul-based telco said in statement that shareholders approved a dividend policy and the distribution of dividends for the fiscal years 2010 to 2014 – a total TRY3.925bn.
The payout, equivalent to 42.5% of Turkcell’s total profits over the five years, will take place by 6 April at the latest, the company said.
Acknowledging the approval in its own statement, Sweden’s Teliasonera, which has a 38% direct and indirect holding in Turkcell, said its portion of the payout amounts to TRY1.492m.
TeliaSonera president and CEO Johan Dennelind said the holding of the AGM and decision on dividends “are important steps in achieving ordinary corporate governance of Turkcell”.
“We will continue the positive dialogue with all relevant stakeholders and continue our efforts to achieve what we believe is best for Turkcell and all its shareholders.”
Earlier this week, Teliasonera said it had reached an agreement with Russia’s Alfa Group and Turkey’s Cukurova to propose a dividend payout of TRY3.93bn. The trio indirectly own Turkcell Holdings, which has a 51% stake in Turkcell, and have disputed the ownership of the mobile operator for close to a decade.
The CMB had given Turkcell shareholders until 31 March to convene an AGM or face the prospect of it seizing authority over important decisions. In 2013, the board appointed several members to the Turkcell board after shareholders failed to convene an AGM.
Local brokerage Oyak Securities said in a note to investors that the most important message to be taken from the shareholders’ statements on the dividend payout is that it does not resolve other major issues, noting that Alfa, controlled by Russian billionaire Mikhail Fridman, has reiterated its intention to buy a 13.76% stake in Turkcell from Cukurova.
“We still think that this dividend move is to avoid CMB intervention …,” the firm said. “Thus, considering that the board deadlock remains, minorities will only receive the accumulated dividends in [the] AGM … and have no additional benefits from a possible ease in shareholder dispute.”
Last week, Alfa offered US$2.8bn for a 13.76% stake in Turkell currently held by the state-owned Ziraat Bank as collateral for extending a loan to Cukurova, owned by Turkish businessman Mehmet Emin Karamehmet. Cukurova took out the loan to pay the US$1.6bn ordained by a UK court to recover the stake from Alfa, which seized it after Cukurova defaulted on a loan.
Analysts, however, consider Alfa’s bid unlikely to succeed, saying there is little appetite to see the mobile operator pass into foreign hands.
Meanwhile, Turkcell chose yesterday to announce the appointment of Kaan Terzioglu as its new CEO from 1 April.
