MTN TO OPPOSE TURKCELL CLAIM; REAFFIRMS COMMITMENT TO INDEPENDENT HOFFMANN INVESTIGATION
Johannesburg - On 2 February 2012, MTN Group Limited (MTN) alerted shareholders to the possibility of a claim being filed by the Turkish mobile phone operator Turkcell Iletisim AS (Turkcell) in the US federal courts. While the claim has not been served on MTN, MTN understands that a claim has now been filed by Turkcell in the US courts against MTN and its wholly owned subsidiary, MTN International (Mauritius) Limited, in which Turkcell claims no less than US$4.2 billion, plus interest and punitive, consequential and other damages in connection with the award of the second GSM licence in Iran to Irancell.
MTN continues to believe that there is no legal merit to Turkcell`s claim and no basis for such claim to be brought before a US court. MTN will accordingly oppose the claim.MTN further notes the South African government`s denial of the allegations that MTN exercised influence over it.
In advance of Turkcell filing its claim, MTN announced the formation of an independent committee, under the chairmanship of the internationally renowned jurist, Lord Hoffmann, to investigate Turkcell`s factual allegations. The Hoffmann committee has already begun its investigations and will report its findings to the MTN board, together with any recommendations as to actions to be taken as a result of its findings, including as to their publication.
The Hoffmann committee has invited Turkcell to participate in its investigation, but Turkcell has to date not done so. The invitation remains open to Turkcell to participate in the Hoffmann committee`s investigation.
29 March 2012
Issued by MTN through the JSE Sens Service, March 29 2012
Click here to sign up to receive our free daily headline email newsletter