Turkcell Shareholder Cukurova Gets Extension on Payment to Alfa - UK Court

By Emre Peker and Yeliz Candemir

ISTANBUL--Turkey's Cukurova Holding AS on Wednesday secured an extension on a payment to Russia's Alfa Group to reclaim a controlling stake in Turkcell Iletisim Hizmetleri AS (TKC), the biggest Turkish mobile-phone operator.

The deadline for the Istanbul conglomerate's payment to the Moscow-based company is 60 days after a ruling in a separate case being held in New York, the U.K.'s Privy Council said after a hearing. Cukurova's payment to Alfa will start accruing interest 19 days after the U.S. court decision.

Billionaire Mehmet Emin Karamehmet's Cukurova must pay $1.56 billion to reclaim a 13.8% stake in a holding company that would re-establish his control over Turkcell, the U.K. court said in July. That ruling followed a January 2013 decision granting the Turkish mogul the right to redeem the shares from Alfa.

Wednesday's ruling in the U.K. court came after Alfa sought a cut-off date for the payment. The parties in the case could seek to change the U.K. court's decision, according to an e-mailed statement from the Privy Council.

"While it was obviously a matter for the Court of Appeals for the 2nd Circuit [in New York], it would greatly assist the expeditious resolution of the present dispute if that Court was able to reach its decision soon," the Privy Council said, scheduling a Feb. 25 hearing.

Turkcell's shares were little changed after the U.K. court ruling shortly before 1300 GMT, having already dropped slightly more than 1% to TRY11.03.

The legal battle for control of Turkcell, in which Sweden's TeliaSonera AB (TLSN.SK) also holds a stake, has been going on for more than six years and could end once the Privy Council and U.S. court, which had ordered Mr. Karamehmet to pay $1 billion to the Swedish shareholders, reach a conclusion.

Write to Emre Peker at [e-mail] and Yeliz Candemir at [e-mail]

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