Cukurova and Alfa Agree on Term for Financing in Turkcell Stake

By Yeliz Candemir

ISTANBUL--Turkey's Cukurova Holding AS and Russia's Alfa Group have reached agreement on the terms necessary to make the financing available for Cukurova to reclaim a controlling stake in Turkcell Iletisim Hizmetleri AS (TKC), the biggest Turkish mobile-phone operator, a U.K. court said Friday.

Turkcell's major shareholders--Turkish billionaire Mehmet Emin Karamehmet's Cukurova, Sweden's TeliaSonera AB and Russia's Alfa Group--have been fighting to control the mobile-phone operator for seven years, delaying board appointments and halting dividend payments. Cukurova has until July 30 to pay $1.6 billion to Alfa to reclaim a 13.8% stake in a holding company that would reaffirm its control of Turkcell.

"The parties' agreement was approved by the Board on 24 July and the hearing which was scheduled for 30 July will now not take place," the U.K. Privy Council, an appeals court based in London, said in an e-mailed statement.

After the announcement, Turkcell shares closed 4.2% higher at TRY13.65 ($6.52), as Turkey's benchmark BIST-100 stock index rose 0.5% for the day.

Write to Yeliz Candemir at [e-mail]

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