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Balance sheets lie behind Nurol move

ISTANBUL - Hürriyet | 12/10/2007 12:00:00 AM |

Nurol Holding, which called off its participation in a Sabah-ATV tender despite having previously obtained specifications, cited the media company's dwindling revenues as the reason behind its

Nurol Holding, which called off its participation in a Sabah-ATV tender despite having previously obtained specifications, cited the media company's dwindling revenues as the reason behind its move.

  Nurol found the estimated price of $1.1 billion too high after viewing the nine-month balance sheets, Nurol Board Vice Chairman Oğuz Çarmıklı told Ekonomist Magazine.

Many wondered why only the Çalık Group attended the tender for Sabah-ATV, which was put up for sale in its economic and commercial entirety by the Savings Deposit Insurance Fund (TMSF). Nurol, which had been preparing to participate in the tender with Carlyle, one of the world's most important broadcast firms, opted out of the tender at the last minute.

Profit drops:

“We called off the bid and left," Çarmıklı said. "We were sorry, but the balance sheets were not as we had expected them to be.”

The six-month data submitted to Nurol showed profits of YTL 57 million, Çarmıklı said.

“However the profit dropped to YTL 40 million with the nine-month figures," he added. "At most, its 12-month profit would be YTL 50 million, which might pay itself back in approximately 25 years.”

Nurol was not interested in waiting so long for a return on its investment, said Çarmıklı, adding that without considering other synergies, the business is not feasible.

“Under normal circumstances, an admissible return period would be 10 years at most,” he said.

Evaluating the Çalık Group's agreement to offer $1.1 billion, “[In our calculations] the return period seems to be 25 years," Çarmıklı said. " I do not know how this may be feasible for them."

The decision to call off the tender was actually made by the Carlyle Group, said Çarmıklı. “Otherwise, we might have increased the price a little more. However, [the Carlyle Group] acts in accordance with what is visible on the books.”

Nurol is interested in all kinds of energy sector privatization projects over the upcoming period, Çarmıklı said. “We will also deal with motorway and bridge privatizations. We are not interested in the Halk Bank, because it it exceeds our dimensions.”

 

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