Qatari sports network BeIN Media Group has signed a definitive agreement to acquire Turkish pay-TV group Digiturk for an undisclosed sum.
The announcement brings to an end months of speculation that BeIN Media was in the process of buying Turkey’s…
Qatari sports network BeIN Media Group has signed a definitive agreement to acquire Turkish pay-TV group Digiturk for an undisclosed sum.
The announcement brings to an end months of speculation that BeIN Media was in the process of buying Turkey’s largest DTH broadcaster.
Under the terms of the transaction, BeIN Media will buy DP Acquisitions B.V, the holding company of Digiturk that is owned by Turkish diversified investment group Çukurova (53%) and US private equity firm Providence Equity Partners (47%).
Management rights in respect of Çukurova Group’s ownership interest in Digiturk have been exercised by Turkey’s Savings Deposit Insurance Fund (TMSF) since May 2013. This was the result of Çukurova missing certain tax repayments, forcing it to transfer some of its assets to the government body.
There have been rumours of a sale ever since TMSF took over the majority stake in Digiturk. Incumbent telco Turk Telecom submitted a US$530m non-binding bid in July 2013 for TMSF’s holding. This was quickly followed by a US$742m offer from Turkish media giant Dogan Group in September.
Doha-based television network Al Jazeera, which BeIN Media was part of until it was spun out in early 2014, then expressed its interest in late 2013.
While Providence was initially rumoured to also be interested in buying TMSF’s stake, negotiations shifted to an outright sale of Digiturk in 2014. The pay-TV provider has been valued at between US$1.5 and US$2bn.
BeIN Media has been aggressively acquiring global sports broadcasting rights since its inception. The acquisition of Digiturk fits with this strategy as the company owns the broadcast rights to the top Turkish football league as well as a number of high profile sporting leagues and events.
Commenting on the transaction, Nasser Al-Khelaïfi, chairman and CEO of beIN Media, said: “The acquisition of Digiturk is a key milestone in our vision of global expansion and our commitment to provide the highest quality broadcast experience in high growth potential and mature markets.Expansion into the Turkish market is a natural next step for the beIN Media due to proximity of Turkish market to MENA region. We look forward to further strengthening the Digiturk platform and advancing the exciting dynamics of the Turkish pay-TV and sports market”.
The acquisition remains subject to a number of conditions, including approvals from regulatory bodies, which should be fulfilled in the coming months.
Barclays acted as exclusive financial adviser to beIN Media in connection with the transaction.
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