Digitürk for Sale as Turkish State Fund Seizes Çukurova Assets

Ankara, Turkey,  May 31, 2013--Turkey’s satellite television provider Digitürk is up for sale following  a Turkish state fund’s seizure of 12 companies owned by the pay TV operator’s majority owner, Çukurova Group.

Bloomberg has reported that Sakir Ercan Gül, chairman of the Turkish Saving Deposit Insurance Fund (TMSF), has revealed that the TMSF is entering into talks with Providence Equity Partners, which holds the 47 percent of Digitürk not owned by Çukurova, with a view to selling either Çukurova’s stake or organizing a joint sale of the company.

Last week, TMSF took over 10 companies owned by Çukurova Group for the Turkish conglomerate’s debt default.

Aside from Digitürk, TMSF also took over Çukurova’s news channel Skyturk, radio channel Alem FM, and daily Gunes, as part of the state fund’s efforts to liquidate the debt the Çukurova Group, one of the largest in Turkey, owes to the Turkish insurer.

Earlier, TMSF took over also the group’s two companies — national television channel Show TV and vehicle manufacturer BMC.

Çukurova Group’s downhill run started as early as 2001 at the height of the country’s severe recession, which resulted in huge financial losses to many banks that gave loans to companies within the Çukurova group. Cukurova’s CEO, Mehmet Emin Karamehmet is reportedly in need of at least $4 billion to settle his debt to the government.

French Canal+ Group is also reported to be among the possible buyers of Digiturk. In 2011 Canal+ Group unsuccessfully attempted to buy Providence's shares. The company was then valued at around €1 billion.

In the meantime, Digitürk has moved to assure its customers that there would be “no disruption in service” in the wake of the seizure.