Treasury negative on Yıldız-Çukurova deal

Treasury negative on Yıldız-Çukurova deal

Treasury negative on Yıldız-Çukurova deal

Yıldız Holding Corporate Communication General Manager Zuhal Şeker has said two state bodies gave a negative feedback for Çukurova deal.

The Treasury and Turkey’s banking watchdog have expressed their disapproval over Yıldız Holding’s plans to provide financing for Çukurova Holding’s Turkcell shares, former’s head of communication has said.

Yıldız Holding subsidiary Gözde Girişim has been holding talks with Çukurova Holding on whether to provide financing to help the company recover its disputed shares in the Turkey’s biggest mobile phone operator Turkcell.

Holding’s Corporate Communication General Manager Zuhal Şeker said yesterday that the Treasury has informed the company that they and the Banking Regulation and Supervision Agency (BDDK) both hold a negative view on the agreement.

“We have received a written statement from the Treasury [and] we received a negative feedback. The BDDK also gave a verbal feedback [on the matter],” she said.

Şeker said “the transaction has been halted from our side,” but noted Gözde Girişim’s desire to take part in the deal.

“We currently have time until the July 30 [deadline set by the U.K. Privy Council]. We received adverse opinion from both institutions but we are very willing and this is a transaction we want… Currently we are assessing the situation amongst ourselves,” Şeker said.

The U.K. Privy Council had originally extended the deadline for Çukurova till July 30 for the company to pay $1.6 billion to recover a disputed stake in Turkcell from Russia’s Altimo. Çukurova and Altimo, the telecoms investment arm of Russian billionaire Mikhail Fridman’s Alfa Group, have been fighting for seven years over the control of Turkcell, choking the decision-making process at the company and preventing the payment of dividends.