Turkey's Cukurova is close to recovering a controlling stake in Turkcell after a British court said it had agreed financing terms. Cukurova has been battling Altimo, the telecoms investment arm of Russia's Alfa Group, for seven years for control of Turkey's biggest mobile operator, leaving Turkcell management without a clear mandate from shareholders. A source at Altimo told Reuters that Cukurova would secure financing to recover the stake, for which it has been ordered to pay USD 1.6 billion, from Turkish state-owned lender Ziraat Bank and that it was expected to make the payment in the last week of July. A second source close to the deal said the payment would be made on 31 July. Cukurova declined to comment.
A British court which has been arbitrating in the dispute said earlier that Cukurova and Alfa had agreed terms under which Cukurova could finance the recovery of the stake. Altimo appropriated the 13.8 percent stake - a controlling position due to Turkcell's complex ownership structure - when Cukurova defaulted on a USD 1.35 billion loan. The Privy Council ruled a year ago that Cukurova must pay USD 1.6 billion, a sum which includes interest payments, to Altimo if it wants to recover the stake.
