An arbitration tribunal in London has dismissed claims against LetterOne (L1), Russian billionaire Mikhail Fridman’s international investment company, by Turkey’s Çukurova and Ziraat.
The move marked the latest stage in a decade-long dispute over the ownership of Turkey’s Turkcell.
In a statement, L1 says that the tribunal decided that Çukurova and Ziraat will bear all of the costs of the arbitration together with legal fees. It adds that the tribunal’s decision requires Çukurova to elect, within 60 days, whether to buy L1 shares in Turkcell for $2.7 billion or sell its shares in Turkcell to L1 for $2.8 billion.
If Cukurova fails to elect to purchase L1’s shares within 60 days, it shall be treated as having elected to sell its shares to L1.
Commenting on development, Alexey Reznikovich, L1 technology’s managing partner, said: “We are extremely pleased with the tribunal’s award in London and that they have supported our position. We have for some time been trying to find a resolution to this decade long deadlock between shareholders so that Turkcell can be managed in a normal way.
“It is in the interests of Turkcell – and all shareholders big and small – that all parties now follow and honour this award and do not obstruct the resolution process.
“This transaction will allow the reinstatement of good corporate governance at Turkcell and pave the way for the re-election of its board of directors, which currently lacks representation of any large shareholder”.