Turkey Wealth Fund (TVF) becomes a 26.2 percent shareholder of Turkcell İletişim Hizmetleri AŞ.
According to the statement made by TVF, with the agreements signed with Telia Company, LetterOne, Çukurova Holding, Ziraat Bank and related parties, TVF will become the largest partner of Turkcell.
This acquisition, which is TVF’s first investment in a company that operates in the private sector and is traded on foreign stock exchanges, is described as a part of the fund’s strategy to support Turkey’s competitive companies.
While TVF, in line with its founding vision, became the biggest supporter of a leading company in global digital transformation, LetterOne demonstrated its confidence in Turkcell’s future by almost doubling its shares.
With the acquisition, which resolves long-standing disputes between shareholders that have a negative impact on the company’s market value and performance, Turkcell’s partnership and board of directors structure will be simplified, becoming more stable and transparent.
In the statement, the following was noted regarding the partnership structure in the new period after the acquisition:
“TVF will be able to determine 5 of the 9 members on the Turkcell Board of Directors with its 15 percent privileged shares out of the total 26.2 percent and will be the largest shareholder with management control of the company. Telia will hold all of its 24.02 percent indirect shares in Turkcell. It will exit Turkcell by selling it for $530 million. LetterOne will become the largest minority shareholder, increasing its share in the company to 24.8 percent in total.
Turkcell Holding joint venture will end, and Çukurova Holding will exit Turkcell by selling its indirect shares. 4 members of the board of directors will be able to elect without TVF privileges, and thus minority shareholders will gain more power. Turkcell’s current dividend policy will be continued. “Turkcell will continue to be the only Turkish company traded on both Borsa Istanbul and the New York Stock Exchange.”
The process is aimed to be completed in 2020 after the amendments to the Turkcell Articles of Association are approved at the General Assembly and the necessary permissions are obtained from the relevant regulatory bodies.
“Our primary duty is to invest in Turkey’s strategic companies”
TVF General Manager and Board Member Zafer Sönmez, who included his views in the statement, stated that Turkcell is expected to grow further in the post-pandemic period with the increasing demands for connectivity and technology today.
Stating that TVF’s primary duty is to invest in Turkey’s strategic companies, Sönmez said, “We are making this investment so that Turkcell, Turkey’s leading digital operator, can reveal its potential in the most effective way. In the new period, Turkcell’s performance-oriented structure and corporate “As TVF, we will offer all our support to make its governance even stronger. I wish it to be beneficial and auspicious for the future of our country.” made his assessment.
