US private equity firm Providence Equity Partners is talking to bidders for its 47% stake in Turkish pay-TV platform Digiturk, SatelliteFinance understands. Providence declined to comment on the matter, but a source familiar with the situation said the…
US private equity firm Providence Equity Partners is talking to bidders for its 47% stake in Turkish pay-TV platform Digiturk, SatelliteFinance understands. Providence declined to comment on the matter, but a source familiar with the situation said the firm is “entertaining get-to-know-you type meetings with third parties”, although “there is not a typical formal sale process underway”. Private equity groups Apax, BC Partners, Carlyle and Blackstone are reportedly conducting due diligence for the group, which is valued at around US$2bn. Media giants Time Warner and News Corp are also allegedly looking at the stake. Contrary to some reports, SatelliteFinance understands Morgan Stanley is not advising Providence on its options. Providence acquired the stake in January 2006 from Turkish diversified holding company Cukurova, which currently owns the rest of Digiturk, for US$250m. In November 2007, the US private equity firm sought to sell 27.5% of this through an IPO. Plans to list part of Digiturk later fell through because of a weak market, but at the time the 27.5% stake was valued at US$550m, valuing Digiturk entirely at US$2.2bn. In April this year Digiturk won exclusive rights to broadcast the Turkish Super League, Turkey’s local football tournament. The same month also saw the company secure a lease renewal agreement with Eutelsat for 12 transponders at the 7E orbital hotspot through to 2021.
