Battle for Turkcell

Between Turkish and Russian giant telecommunications there is a battle for control of Turkey's largest mobile operator Turkcell. The action comes to a logical end.

How the British media write, the Supreme Court of the United Kingdom granted the request of Cukurova Finance International (CFI) to extend the term of payment by Alfa Telecom Turkey (ATT, the structure of Altimo - Russian holding company Alfa Group) of $ 1.56 billion for the Turkcell shares until a decision on the claim of another Turkish operator shareholder - the Swedish-Finnish company TeliaSonera. Prior to making that decision the interest will not be charged. Translated, this means that the British prefer to get rid of Russian business in the Turkish telecommunications market.

Earlier, on July 9, the court held that the CFI (principal owner of a Turkish national Mehmet Karamehmet) shall, within 60 days to pay ATT $ 1.564 billion if it wants to regain the right to a 13.8% stake in Turkey's largest mobile operator.

Even earlier - in April, TeliaSonera has made in the court of the Southern District of New York for an injunction Cukurova to hire and pay money for the release of the pledged Alpha package. The decision was made to secure obligations of Cukurova to pay TeliaSonera fine of $ 932 million. This penalty was  imposed by the court on the Cukurova for failure to fulfill an agreement to sell the Scandinavians 26,9% Turkcell in 2005. Given the amount of interest payable before the Turkish company TeliaSonera now exceeds $ 1.1 billion At the request of the Swedish-Finnish company's New York court has imposed on the assets of Cukurova an interim measure until the complete fulfillment of the obligations. To pay with ATT, Cukurova must first find more than $ 1 billion for payments to TeliaSonera. So Scandinavians want to "annoy" the Turks for what they are eight years ago chose Russian longtime partner (TeliaSonera, in addition, has a solid share in all of the Turkic states).

If Cukurova not be able to pay with the structure of Altimo, it will have to part with its 13.8% shareholding in Turkcell. Altimo rights to this package a British court found in January, allowing Cukurova regain those shares by paying off the debt to ATT. If Cukurova does not pay the debt, the structure of Alfa Group will increase the stake in Turkcell more than doubled - from 13.22 to 27.02%.

Cukurova and Altimo since 2007 lead the legal battle for shares of Turkcell. In 2005, Cukurova received from Alpha of $ 1.7 billion secured by 13,8% Turkcell. This loan was issued as part of deal to buy Russian holding 49% of Cukurova Telecom Holding (51% remained at Cukurova). As a result of this purchase Altimo gained control of 13.22% of Turkcell.

Cukurova in November 2006 paid Alfa Group a part of the loan in the amount of $ 357 million to repay the debt. in full, Cukurova drew from JP Morgan Bank $ 1.5 billion, but Alfa Group stated that the involvement by Turkey's company of new borrowing is a violation of conditions of the loan agreement, and insisted on getting the 13.8% stake in Turkcell, which the loan was secured with.

At the moment, 51% of the shares of Turkcell are owned by Turkcell Holding AS, which is at 52.91% (controlling interest) owned by Cukurova Telecom Holdings Ltd. Given the share directly held, TeliaSonera has 37% in Turkcell, Cukurova has 26.98%, and Altimo has 13.2%.

Turkcell holds more than half of the Turkish mobile telecom market. The company is also involved in cellular operators of Azerbaijan, Georgia, Kazakhstan, Moldova, Northern Cyprus, Ukraine and Belarus. Turkcell revenue in 2012 was $ 5.8 billion and its net profit was $ 1.2 billion - 17D-