Cukurova Holding AS won its legal battle against Russian Alfa Group over Turkcell Iletisim Hizmetleri AS, Turkey's biggest mobile-phone operator. To recover a disputed 13.7% stake in Turkcell from Alfa Group, Cukurova Holding AS must pay Alfa US$1.56 billion. The news gave investors new hope for a payout of unpaid dividends in the years between 2010 and 2012.
Analyst, including Istanbul-based Global Securities, expected the amount Cukurova needed to pay to regain Turkcell to be around US$1.6 billion to US$2.4 billion. Having to pay the lower end of the range, Cukurova should be able to find financing easily going forward, Global Securities noted.
A ruling made in London by the U.K. Privy Council allows Cukurova Holding to regain its control over Turkcell after an almost decade-long battle with Alfa. The judge that made the ruling, Jonathan Mance, said the sum has to be paid to an Alfa unit in no more than 60 days.
Alfa seized the disputed Turkcell stake from Cukurova when it said Cukurova defaulted on a 2005 loan deal, where the shares were allegedly pledged as collateral.
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