Russia's Altimo reduces its stake in Turkcell below 5 percent

Alfa has been embroiled in a long-running fight with Telenor ASA for control over Kyivstar, a Ukrainian mobile operator, in which the two have strategic stakes.
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A U.S. judge ruled in November that Alfa must either sell its stake in Kyivstar, or reduce its stakes in competing operators Turkcell and Ukrainian High Technologies to less than 5 percent.
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Altimo said it sold a 62.2 percent stake in its Turkish subsidiary, Alfa Telecom Turkey Ltd, for $90 million to Kazakhstan’s Visor Group affiliate Nadash International Holding and Russian businessman Alexander Mamut’s Henri Services Limited. Following the sale, Altimo holds 4.99 percent of Turkcell.

 

"We are not leaving Turkcell, but still staying as the shareholder of the company," said Kirill Babaev, Altimo senior vice president, in a statement.

 

"However, although we disagree with Telenor's reading of the noncompete provision that the New York court adopted, we look forward to ending the court battle with Telenor," he added.

 

The stake divestment comes one week after a New York judge found Alfa in contempt for a second time for failing to comply with an earlier court order to sell the Turkcell shares. It ordered Alfa to pay penalties starting March 12.
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Babaev said neither Altimo, nor any Alfa affiliates, currently hold a stake in Ukrainian High Technologies.
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Telenor said it would not comment until its lawyers had studied Alfa’s action. Alfa is also fighting Telenor for control of Russia’s No.2 mobile operator VimpelCom.