Turkish investment firm Cukurova Holding could reportedly lose control over Turkcell if it fails to repay about US$1.4bn of debt due in early March.
Cukurova owner and chairman, Mehmet Emin Karamehet, told the Financial Times newspaper the group has…
Turkish investment firm Cukurova Holding could reportedly lose control over Turkcell if it fails to repay about US$1.4bn of debt due in early March.
Cukurova owner and chairman, Mehmet Emin Karamehet, told the Financial Times newspaper the group has appealed to the British Privy Council against a December 2011 lower court order concerning the ownership of Turkey’s biggest mobile phone operator.
The Eastern Caribbean appeal court ruled that Cukurova had to pay US$1.4bn within 90 days to prevent a July court decision from taking effect.
According to the July ruling Cukurova had defaulted on a US$1.4bn loan to Russian investment firm and fellow Turkcell shareholder Altimo, with which it has been embroiled in a long and complicated dispute.
The court decided that, under the terms of the agreement, Altimo (controlled by Russian billionaire Mikhail Fridman’s Alfa group) was entitled to 13.7% of Cukurova shares put up as collateral.
However, the December court order said Cukurova should be granted a stay on the July ruling until its appeal had been heard. The court said a stay would allow Cukurova to retain control of the 13.7% stake, provided it pays the disputed US$1.4bn into a court account in escrow by the March due date.
The court noted that, irrespective of the outcome of the appeal, Cukurova would have to pay Altimo the US$1.4bn at one point.
Cukurova Telecom Holdings owns 53% of Turkcell Holding which, in turn, owns 51% of Turkcell Iletisim (the mobile operator). Sweden’s TeliaSonera owns the remaining stake in Turkcell Iletisim. Alfa owns 49% of Cukurova Telecom Holdings and Cukurova Holding controls 51%.
Curkurova Holding, Altimo and TeliaSonera have disputed Turkcell’s ownership for several years.
