TeliaSonera comments on court judgment in British Virgin Islands

The court in the British Virgin Islands (BVI) has issued a judgment granting TeliaSonera’s application for the sale of shares in a holding company in the Çukurova Group, which indirectly holds shares in Turkcell. The judgment is made in proceedings to enforce an arbitral award from the International Chamber of Commerce (ICC) made in TeliaSonera’s favor in September 2011 in the amount of USD 932 million in damages, plus interest and costs.

The judgment of the BVI court represents one step of many in a long-running series of disputes in relation to the ownership of Turkcell.  It is to be followed by a final sale order, which may be subject to an appeal by Çukurova. The judgment does not resolve the existing and complex dead-lock between the shareholders of Turkcell.

In the event that a sale of the shares takes place, LetterOne (an investment company, formerly known as Alfa/Altimo) is under certain circumstances entitled to receive part of the amount collected by TeliaSonera, in accordance with an agreement from 2009. TeliaSonera has not recorded any award amount receivable in its financial statements.