Doğan TV Holding eyes buying Digiturk

Doğan TV Holding eyes buying Digiturk

ISTANBUL - Hürriyet Daily News
Doğan TV Holding has submitted a non-binding offer worth $742 million to buy a 53 percent stake of digital pay-TV operator Digiturk, one of 12 companies of the Çukurova group that was recently seized by Turkey’s state-run Savings Deposit and Insurance Fund (TMSF). Doğan TV’s parent company, Doğan Yayın Holding, announced the offer to the Public Disclosure Platform yesterday.

The Çukurova group owns a 53 percent stake in Digiturk, the broadcaster of Turkey’s football league, while Providence Equity Partners holds 47 percent. In May, the TMSF took over the management of 12 companies of Çukurova over its debts, which amounted to over $450 million.

D-Smart, a subsidiary of Doğan TV Holding, announced at the beginning of July that they wanted to buy Digiturk, which is its biggest rival in the market. Digiturk’s pay-TV market share was 61.73 percent and D-Smart’s 38.27 percent in the second quarter of 2012, when 4.1 million subscribers produced revenues of $26.80 million, up 52 percent from the first quarter, according to the latest data from telecoms regulator BTK.

Türk Telekom bid low

Türk Telekom submitted a non-binding offer to buy a 53 percent stake of Digiturk at the end of July. However, Çukurova group found Türk Telekom’s $530-million offer too low and is not interested in selling at this amount, the TMSF said.

The TMSF is considering the initiation of a tender for the sale of Digiturk, which is the most valuable of the Çukuorva Holding assets seized.

There are a number of local and foreign companies reportedly interested in Digiturk.