Telia sells further 7% of Turkcell; no longer holds direct stake

19 Sep 2017

Telia Company has sold a further 7% stake in Turkey’s Turkcell for SEK4.127 billion (USD518 million), in line with its strategy to refocus on the Nordic and Baltic markets. Telia confirmed in its announcement today that the sale of 153.5 million ordinary shares to institutional investors leaves the Swedish group with no direct stake in Turkcell, although it continues to hold a 24% indirect stake via Turkcell Holding. Johan Dennelind, President and CEO of Telia Company, stated: ‘We will after today’s transaction continue to be the largest shareholder in Turkcell and as such will continue our long-term efforts to solve the ownership deadlock and to reinstate normal corporate governance in Turkcell.’

TeleGeography notes that the three main Turkcell shareholders – Cukurova Group (run by Turkcell’s founder Mehmet Emin Karamehmet), LetterOne (controlled by Mikhail Fridman, affiliated with Russia’s Alfa Group) and Telia – have been locked in disputes and arbitration over their respective holdings since 2005, whilst Telia has no representation on the Turkcell board; in 2013 the Turkish government completed the replacement of all seven Turkcell board members with independent directors.

Turkey, Telia Company, Turkcell