Swedish mobile operator TeliaSonera’s ongoing troubles in Turkey and Russia have prompted it to suspend any aspirations to expand into new geographical regions, according to CEO Lars Nyberg.
In an interview with the Wall Street Journal, Nyberg …
Swedish mobile operator TeliaSonera’s ongoing troubles in Turkey and Russia have prompted it to suspend any aspirations to expand into new geographical regions, according to CEO Lars Nyberg.
In an interview with the Wall Street Journal, Nyberg said the company’s management is completely tied up with the corporate governance issues it is experiencing with Turkish mobile operator Turkcell Iletisim and Russian carrier OAO MegaFon.
“As long as I’m the CEO you won’t see TeliaSonera heading into any new regions,” he said.
But the company would continue to increase its stakeholding and footprint in markets where TeliaSonera already has a presence, he said, adding the company does not currently have the management or ability to expand into any new regions.
In Turkey, local investment firm Cukurova Telecom Holdings owns 53% of Turkcell Holding which, in turn, owns 51% of the Turkcell Iletisim mobile operator. TeliaSonera owns the remaining stake in Turkcell Iletisim.
Meanwhile, Russian investment firm Alfa owns 49% of Cukurova Telecom Holdings, with Cukurova Holding controlling the remaining 51%. Turkcell Iletisim shareholders’ long-running dispute for control of the mobile operator has centred on the significant influence of Turkish businessman Mehmet Karamehmet, who heads the Cukurova Holding group.
In Russia, TeliaSonera has confirmed it is now in talks about the future structure of Megafon, after reported speculation that suggested Russian tycoon Alisher Usmanov may soon assume a majority shareholding after buying a 25% stake from Altimo, which is owned by the Alfa group.
TeliaSonera holds a 44% stake in Megafon, and Nyberg said the corporate governance challenges it is facing in Turkey and Russia are enforced by the company owning minority stakes in these firms.
According to Nyberg, TeliaSonera’s stake in foreign companies should be around 75%-90%. To this end, he pointed to the company’s recent stake increases in Kazakhstan’s Kcell and Nepal’s Ncell mobile operators to more than 60%.
