ISTANBUL, March 23, 2011 /PRNewswire-FirstCall/ -- Turkcell (NYSE: TKC, ISE: TCELL), the leading communications and technology Company announced today that the Company Board of Directors convened on March 23, 2011 decided to distribute an aggregate gross cash of TRY1,328,696,972 (app. $850,311,642), which correspond to 75% of Turkcell's distributable income to be paid in cash to our shareholders.
The Board of Directors resolved the following with the majority votes of those members present;
In accordance with Capital Markets Board ("CMB") Communique Serial: IV, No: 27 on "Principles Regarding Distribution of Dividends and Interim Dividends to be Followed by Publicly Held Joint Stock Corporations Subject to Capital Market Law", clauses set in our Company's articles of association and the dividend distribution policy adopted by our Company, pursuant to the Corporate Governance Principles with the Board of Directors resolution number 366 dated November 24, 2004; our Board of Directors presents the following dividend distribution proposal, to be evaluated and determined at our Company's Ordinary General Assembly Meeting to be held on 21 April 2011.
1- As a result of our Company's activities, pertaining to the period between January 1, 2010 and December 31, 2010, its profit, calculated according to consolidated financial statements, which were audited independently in accordance with Capital Markets Board Communique Serial: XI numbered 29, labeled the "Communique Regarding the Financial Reporting in Capital Markets" is TRY2,256,966,571 (app. $1,444,366,166) and commercial profit calculated according to the provisions of Turkish Commercial Code is TRY2,540,278,988 (app. $1,625,674,509),
2- TRY1,771,595,963 (app. $1,133,748,856) after tax profit calculated according to consolidated financial statements shall be taken as the basis for dividend distribution in accordance with the "Guide for the Preparation of Dividend Distribution Table" published on 27 January 2010.
3- As the ceiling specified in the Turkish Commercial Code (TCC) for the first legal reserve has been reached by our Company, no first legal reserve is set aside,
4- TRY1,771,595,963 (app. $1,133,748,856) is the distributable dividend of the Company, pertaining to year 2010 and TRY1,780,152,672 (app. $1,139,224,800) calculated by adding TRY8,556,709 (app. $5,475,943), which is the aggregate amount of donations made during the year, to the above mentioned amount shall be taken as the primary dividend basis,
5- In accordance with provisions declared in Capital Markets Board ("CMB") Communique Serial: IV, No: 27 on "Principles Regarding the Distribution of Dividends and Interim Dividends to be Followed by Publicly Held Joint Stock Corporations Subject to Capital Market Law", clauses set in our Company's articles of association and the dividend distribution policy adopted by our Company with Board of Directors resolution dated November 24, 2004 and declared to the public; TRY356,030,534 (app. $227,844,960), which is 20%, of the primary dividend basis, amounting to TRY1,780,152,672 (app. $1,139,224,800) shall be distributed as the primary cash dividend. The secondary reserve amounting to TRY121,869,697 (app. $77,991,615) shall be separated from the rest of the net distributable current year profit,
a. The total amount of TRY1,328,696,972 (app. $850,311,642), which shall be distributed in cash, shall be distributed from extraordinary reserves,
b. Withholding tax deductions shall be applicable for the amount to be distributed in cash, TRY1,328,696,972 (app. $850,311,642) as mentioned above,
c. In this respect, a gross TRY0.6039532 (app. $0.3865053), which correspond to 75% of Turkcell's distributable income shall be paid in cash to our shareholders for each share with a nominal value of TRY1 (One Turkish Lira),
The aggregate gross cash dividend payment shall be TRY1,328,696,972 (app. $850,311,642),
6- TRY1,649,726,266 (app. $1,055,757,242), which is the remainder of the current year's distributable profit following the cash dividend distribution shall be:
a. Regarded as extraordinary reserves and set aside within the Company.
b. Withholding tax deductions shall be applicable on the amount, which shall be transferred to the 2011 financial year as extraordinary reserves, should such an amount be subject to redistribution
7- Cash dividend payment to our Company's shareholders shall commence on May 16, 2011 and continue for 15 days at the Istanbul Head Office, and at the Ciftehavuzlar, Izmir and Ankara branches of Finans Yatirim Menkul Degerler A.S. as well as the Central Registry Agency located in Suezer Plaza Askerocagi Cad. No: 15 K: 2 34367 Elmadag - Sisli Istanbul. It shall be made in exchange for the dividend share denominations for the year of 2008, provided that the physical shares held by shareholders are registered by the Central Registry Agency and brokerage house mandated to hold these shares.
* Based on Turkish Central Bank's TRY/$ buying exchange rate of TRY1.5626 for March 23, 2011.
TURKCELL ILETISIM HIZMETLERI A.S.
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