Telia Company has agreed to sell its 47.1 percent holding in Turkcell Holding to the state owned Turkey Wealth Fund for USD 530 million, completing its exit from Turkey's largest mobile operator, Turkcell.
Telia Company held a 24% indirect stake in Turkcell through Turkcell Holding. According to a statement by Telia Company, Turkcell Holding is a privately held holding company, directly and indrectly owned by Cukurova, LetterOne and Telia Company. Its only operation is the ownership of 51 percent in Turkcell. The governance of Turkcell Holding has been challenging and disagreements between the shareholders have caused difficulties in the corporate governance of Turkcell from time to time, said Telia Company.
Telia Company expects to receive USD 530 million, approximately SEK 5 billion, for its ownership in Turkcell Holding. With this final divestment of Telia Company’s interest in Turkey, the total investments in Turkcell amounting to approximately SEK 13 billion have generated total dividends and net divestment proceeds of approximately SEK 28 billion after tax over the last 20 years.
Allison Kirkby, President and CEO, Telia Company
Through this divestment, we unwind a long-lasting legal deadlock; we reduce risk, improve leverage and increase liquidity which will generate better shareholder returns in our core markets.
