TeliaSonera is committed to resolving the deadlock in Turkcell
A new extra general assembly (EGM) in Turkcell has been called by the statutory auditors for October12, 2011 at TeliaSonera’s request. The assembly will resolve issues related to the corporategovernance of the company as well as items related to the fiscal year 2010, including the payment ofdividends.
TeliaSonera’s request to allow the shareholders to address the composition of the Turkcell Board at a general assembly has repeatedly been blocked by the Chairman. This is a clear violation of minority shareholder rights and not only harmful for TeliaSonera as the largest shareholder, but also for private and institutional shareholders in Turkey and abroad, who represent the second largest shareholder group. Following the election of new statutory auditors at the August 11 EGM, the composition of the Board has been added to the October 12 EGM agenda. This has clearly improved corporate governance in Turkcell, to the benefit of all shareholders.
“We look forward to the upcoming EGM, as we believe that the deadlock in the Board of Directors can only be resolved by replacing the current Chairman with a truly independent Board member. This will also pave the way for a positive decision on the distribution of dividends for 2010, which is essential to all shareholders”, says Cecilia Edström, SVP and Head of Group Communications at TeliaSonera.
“The fact that the Turkcell share price reacted very positively on the news of the upcoming EGM provides clear evidence that the current deadlock is having a negative impact on the value of the company. Shareholders now see that the possibilities of both resolving the deadlock in the Board and receiving dividends have increased significantly and we are committed to making this happen.
TeliaSonera is a proud founding member and the biggest shareholder in Turkcell. The sooner we can get out of the deadlock and focus on growing the business of this national champion the better”, Cecilia Edström concludes.