Dogan Agrees to Sell Two Turkish Newspapers for $74 Million

ImageTurkish businessman Aydin Dogan agreed to sell the Milliyet and Vatan newspapers to DK Gazetecilik & Yayincilik AS, owned by the Demiroren and Karacan groups, for $74 million. Dogan will sell Milliyet for $48 million and Vatan for $26 million, unit Dogan Gazetecilik AS (DGZTE), which controls the newspapers, said in a filing with the Istanbul Stock Exchange today.

Aydin Dogan is seeking buyers for his media assets after the government demanded $3.8 billion in back taxes and fines. Goldman Sachs Group Inc. is advising Dogan on the sale of the units, which include CNN Turk television channel. TPG Capital and KKR & Co. LP were among companies shortlisted for the sales. Time Warner Inc. also has said it’s interested.

“It looks like the price is much lower than Dogan Group paid to buy Vatan daily,” Mehmet Agyuz, an analyst at EFG Istanbul Securities, said by telephone. “The deal doesn’t include the main bread-and-butter business, which is the Posta daily.”

Dogan Gazetecilik fell 22 kurus, or 5.3 percent, to 3.91 liras at 5:30 p.m., its lower price limit for the session and erasing gains of as much as 16 percent earlier. Dogan Yayin Holding AS, which controls Dogan Gazetecilik, rose 2 kurus, or 1.1 percent, to 1.81 liras.

Demiroren runs companies including Milangaz, a gas distributor. The Karacan family were founders of Milliyet newspaper and own assets including the Number One Media Group.

Lawyers are still working on the agreement, Omer Karacan said in a telephone interview. The agreement is expected to be signed today, Bloomberg HT television said citing Hanzade Dogan Boyner, daughter of Aydin Dogan.Source: Bloomberg


Last modified onSaturday, 06 May 2017 10:07