Çukurova not satisfied with Türk Telekom’s offer for Digiturk: TMSF

ISTANBUL – Reuters

Çukurova group found Türk Telekom’s $530-million offer for 53 percent stake in Turkish digital pay-TV operator Digiturk too low and is not interested in selling at this amount, the head of the state agency which controls the television company said, adding that there were four other bidders including mobile operators.

Turkey’s Savings Deposit Insurance Fund (TMSF) seized control in May of Digiturk and dozens of other companies belonging to troubled conglomerate Çukurova Group in connection with losses at a bank it owns.

“We’ve only received one non-binding bid from a single company, and that is a $530 million bid for Çukurova’s stake, bringing the total value to $1 billion. It is Türk Telekom’s bid,” TMSF head Şakir Ercan Gül told Sky 360 television late on July 26.

But Çukurova was not satisfied with the amount of Türk Telekom’s non-binding offer, he said.
“The group is informed about the offer. We know it is not considering to sell at this price for sure. Therefore, the U.S. partner [of Çukurova] is not thinking to sell at this price either. They’re not interested in this bid at all,” he said.

U.S. private equity group Providence Equity Partners own 47 percent of Digiturk.
Gül said there were three or four other interested parties including Turkish conglomerate Doğuş Group and “almost all mobile operators.”

A consortium made up of several Turkish and foreign investors, Efor Investment and Beetech Consortium, has announced on July 25 that it also placed a bid for Digiturk acquisition.

Digiturk’s biggest rival, D-smart, has also voiced its desire to buy the company on several occasions.