September 19, 2017 / 6:41 AM / a month ago

UPDATE 1-Telia sells 7 pct stake in Turkcell for SEK 4.1 bln

(Adds background)

Sept 19 (Reuters) - Nordic telecom operator Telia Company said on Tuesday said it had sold a 7 percent stake in Turkish mobile operator Turkcell in a deal generating proceeds of about 4.1 billion Swedish crowns ($516 million).

* Result of placing of ordinary shares in Turkcell

* Says following completion of placing and sale, Telia Company will own 24.0 percent of issued share capital of Turkcell through its ownership in Turkcell Holding

* Says through placing, Sonera Holding B.V., a wholly owned subsidiary of Telia Company, has agreed to sell an aggregate of 153.5 million ordinary shares in Turkcell at a price of TRY 11.60 per ordinary share

* Says sale is in line with strategy to focus on its Nordic and Baltic operations

* “We ... will continue our long term efforts to solve the ownership deadlock and to reinstate normal corporate governance in Turkcell,” Telia CEO Johan Dennelind said in a statement

* Telia will remain Turkcell’s largest owner in economic terms after the proposed sale through its indirect holding

* Says deal to generate gross proceeds of approximately TRY 1,781 million, equivalent to about SEK 4,127 million, with a pro forma positive effect on Telia’s net debt to EBITDA of 0.14x

* Says BofA Merrill Lynch, Citigroup Global Markets Limited and UBS Limited acted as joint bookrunners in connection with the placing

* In May, Telia sold a separate 7.0 percent stake in Turkcell to institutional investors Source text for Eikon: Further company coverage: ($1 = 7.9423 Swedish crowns) (Reporting By Olof Swahnberg; editing by Niklas Pollard)

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