Alfa Group affiliate Alfa Finance Holdings has completed transactions selling 62.2% of its shares in Alfa Telecom Turkey to Visor Group affiliate Nadash International Holdings and Henri Services.
As a result of the transactions, Nadash and Henri Services (HSL) will join Alfa Finance and Alfa Telecom Turkey (ATTL) as shareholders of Turkcell Illetism Hizmetleri.
The sales to Nadash and HSL reduce Alfa Finance’s holding in Turkcell to 4.99%. Pursuant to a new shareholders agreement, Nadash and HSL have the right to appoint independently directors to ATTL’s board of directors, and the right to appoint jointly one director to Turkcell’s board of directors.
The sales were prompted by a November 2008 decision of the Federal Court in New York confirming a 2007 award issued in an arbitration brought by Telenor against Storm, a subsidiary of Altimo. Telenor and Storm are parties to a shareholders agreement of Kyivstar, a Ukraine-based mobile phone operator.
Kirill Babaev, senior vice-president of Altimo, said: We are not leaving Turkcell, but still staying as the shareholder of the company. However, although we disagree with Telenor’s reading of the noncompete provision that the New York Court adopted, we look forward to ending the court battle with Telenor.
