Business News
Axel Springer AG: Axel Springer purchases Minority Interest in the major Turkish Media Group, Dogan Yayin Holding A.S. and sells shares in Dogan TV Holding A.S.
Thursday 27. November 2008 - Today Axel Springer entered into an agreement with Dogan Sirketler Grubu Holding A.S. (Dogan Holding) on the purchase of shares representing at least 9.1 % in Dogan Yayin Holding A.S. (Dogan Yayin). Dogan Yayin is a major Turkish media group, including inter alia a majority participation in the newspapers Hürriyet, Milliyet and Posta, shareholdings in the magazine company Dogan-Burda and a majority holding in the television and broadcasting company Dogan TV Holding A.S. (Dogan TV).
Currently Axel Springer holds 25 % of the shares in Dogan TV. At the moment Dogan Yayin is planning a capital increase, in which Axel Springer will not participate. After completion of the capital increase, Axel Springer will acquire shares in Dogan Yayin from Dogan Holding, representing 9.1 % to 9.7 % in Dogan Yayin – depending on the participation of the existing shareholders in the capital increase. The purchase price amounts to EUR 47 million. Axel Springer will appoint one of the directors in the Board of Directors of Dogan Yayin.
On the other hand, Axel Springer sells to Dogan Yayin 5.1 % of its shares in Dogan TV. Due to a planned capital increase at Dogan TV, in which Axel Springer will not participate, the direct participation will be subsequently decreased to 18.6 %. The purchase price to be paid by Dogan Yayin for the shares in Dogan TV will amount to a total of EUR 77 million and is calculated on the basis of the evaluation, that was applied for the purchase of shares in Dogan TV by Axel Springer two years earlier. A partial amount of EUR 47 million will be due upon completion of the transaction, another partial amount of EUR 30 million will be due with interest in March 2012 at the latest.
When Axel Springer acquired the 25 % in Dogan TV, Axel Springer and Dogan Yayin had agreed upon a purchase price adjustment mechanism; this mechanism will remain in force for the remaining shares of Axel Springer in Dogan TV amounting to EUR 298 million, but will be basically extended until the end of 2015. The further rights of Axel Springer on the level of Dogan TV will remain unaffected by the transaction.
Both transactions are subject to the usual conditions, in particular to the legal and regulatory clearances.