TeliaSonera: Arbitration Court Finds Turkcell Deal Valid
STOCKHOLM -(Dow Jones)- TeliaSonera, Friday said an arbitration tribunal of the International Chamber of Commerce has issued an award finding that a binding share purchase agreement was concluded between TeliaSonera and Cukurova in 2005.
TeliaSonera said the award calls for Cukurova to sell all the remaining shares in Turkcell Holding to TeliaSonera for a cash consideration of $3.1 billion, thereby increasing TeliaSonera's effective ownership to 64.3% in Turkcell.
TeliaSonera said the tribunal held that Cukurova is obligated to join TeliaSonera in good faith efforts to bring about a closing of the Turkcell Holding transaction.
TeliaSonera said the tribunal retains jurisdiction of the matter until the parties report back on their efforts to reach closing. The tribunal further held that even if Cukurova proceed to closing of the transaction, the responsibility to pay potential damages due to the delay in proceeding to closing remains.
"I am of course very pleased with this decision, which is in line with what we have claimed all the time," comments Anders Igel, chief executive of TeliaSonera, and continues "We hope to conclude the transaction with Cukurova, but even if the share purchase agreement is binding, we do not yet know if Cukurova is willing to, or able to, proceed with a transfer of the shares to TeliaSonera."
On March 25, 2005, an agreement was announced in which Cukurova agreed to sell all the remaining shares in Turkcell Holding to TeliaSonera.
TeliaSonera said the award results from an arbitration proceeding in Geneva that TeliaSonera commenced in May 2005, against Cukurova after Cukurova withdrew from the transaction.
(END) Dow Jones Newswires"
Posted to the site on 26th January 2007
