Turkcell Transfers Administration to Foreign Partner

Currently 16.33 percent of Turkcell shares are open to the public. According to experts, the sale of the shares is a positive step for Turkcell, the Cukurova Group, and Yapi Kredi Bank and the Turkish Savings Deposit Insurance Fund (TMSF), which has debts owed by the group. The Cukurova Group noted in the letter sent to the Stocks Exchange that it found Sonera’s offer suitable and they will make decisive negotiations regarding the transfer agreement.

HSBC Investment Analyst Bulent Yurdagul remarking on the topic on Friday: "when you look at it from Turkcell’s angle, the worries regarding the investor diminishes. TeliaSonera is an important company and its share in Turkcell will increase showing the importance that it gives to the company. The sale price of the company is at a premium and it is realized at a very reasonable rate." HSBC Portfolio Administration head Economist Ahmet Akarli said: "If the agreement takes place this will add $3.1 billion direct investment to Turkey’s foreign trade balance. This will remove some worries regarding the quality of finance in Turkey." Akarli emphasized that the timing of the agreement was also good and added: "Stable, strong, real, and direct investment during a period in which global markets fluctuate helps to increase the trust of foreign investors and Turkey’s resistance to external shocks."

First Turkish company on New York Stocks Exchange

Turkish Press printed the headlines "Turkcell wrote history" on July 10, 2000 suggesting a first in Turkey. The Company sold 96 million shares on the New York Stocks Exchange (NYSE) at 17.60 with a ceremony attended by the owner of Cukurova Group, Mehmet Emin Karamehmet. Turkcell sold its shares at 44,000 Turkish Lira on the Istanbul Stocks Exchange (ISE) at the same time. Turkcell is the leading cell phone operator in Turkey with 23.4 million users as of December 2004. The company also has operations in Northern Cyprus, Ukraine, Eurasia and Turkish Republics, and in a recentTurkcell investment it obtained majority shares in Irancellan. The net sale price of Turkcell, which has shares on the Istanbul and New York stock exchanges, as of the first nine months has reached $2.550 billion and as of February 2003 the company employed 5,062 workers February.

TeliaSonera on the other hand was established when the Finnish telecom service supplier Sonera Corporation and the Swedish telecom operator Telia Company merged. Sonera, a leading telecom company in Finland operates mostly in the mobile telecommunications sector. TeliaSonera is a leading telecommunications group in Baltic and Nordic countries. Nordic countries are generally members of the Nordic Council such as; Denmark, Finland, Iceland, Norway and Sweden. Baltic countries include Estonia, Leetonia and Latvia, which are three newly established countries neighboring the Nordic countries.