Turkish holding group Cukurova has had its shares in mobile operator Turkcell provisionally sequestered because of an outstanding TL1.25bn (E555m) tax bill.
Cukurova, which has a 0.5% stake in Turkcell but controls it through a complex ownership…
Turkish holding group Cukurova has had its shares in mobile operator Turkcell provisionally sequestered because of an outstanding TL1.25bn (E555m) tax bill.
Cukurova, which has a 0.5% stake in Turkcell but controls it through a complex ownership structure, could also face demands for a further US$300m (E212m) “soon”, reported local publication Zaman citing a government source.
In a regulatory statement announcing the share seizure, Turkcell stated: “With regards to the respective notification, the shares, together with other rights, assets and receivables of Cukurova Holding A.S. pertaining to our company will be determined, and the recording of the provisional seizure will be processed on the corresponding assets.”
A spokeswoman for the company told TelecomFinance that this action so far only applies to the holding company’s direct 0.5% stake in Turkcell.
It’s not too late for Cukurova to pay its outstanding tax liabilities and avoid having its shares permanently seized, she said, declining to disclose a deadline for this option.
However, reports have highlighted the significance of the timing of the action, which comes as Cukurova chairman Mehmet Karamehmet faces calls from other Turkcell shareholders to reduce his influence on the company.
Shareholders Swedish operator TeliaSonera and Russian investment firm Altimo are reportedly stepping up efforts to remove Turkcell chairman Colin Williams over alleged impartiality violations.
Williams, a former independent board member of the group, ended Karamehmet’s 17-year reign as chairman when he was appointed to the role last February.
But TeliaSonera has accused Williams of being too loyal to Karamehmet and blocking attempts to increase the number of its independent board members.
Teliasonera owns 37% of Turkcell, while Altimo owns 13.22%. Although Cukurova owns a relatively minor direct stake of 0.5% in the group, it is the majority owner of Turkcell Holding, which owns 51% of the operator.
At Turkcell’s AGM on 21 April, the disgruntled shareholders failed to approve its 2010 accounts and dividend, as they called for the stock to be suspended. The company’s stock resumed trading on 25 April, and Williams has reportedly made undisclosed commitments to help appease the shareholders.
