Business News

Axel Springer acquires approx. 10 percent in Dogan Media Holding

Thursday 27. November 2008 - Extension of the strategic partnership between Dogan and Axel Springer

Axel Springer will henceforth hold approx. 10 percent in the major Turkish media group, Dogan Yayin Holding. A respective agreement has been signed today. The purchase price amounts to EUR 47 million. Axel Springer will appoint one of the directors in the Board of Directors of Dogan Yayin Holding.

Dogan Yayin Holding is a major Turkish media group, which includes majority participations in the newspapers Hürriyet, Milliyet und Posta, shareholdings in the magazine company Dogan-Burda, a majority participation in Dogan TV as well as a majority participation in the publicly listed company Trader Media East. Majority shareholder with a participation of 72.76 percent is Dogan Sirketler Grubu Holding A.S. (Dogan Holding). In 2007 the company generated with its approx. 13,000 employees a turnover of ca. USD 2 billion and an EBITDA of USD 170 million.

“We are glad to develop and enhance the existing partnership of many years between the Dogan-Group and Axel Springer “states the chairman of Axel Springer AG, Dr. Mathias Döpfner. “Dogan-Media Holding has not only an excellent position in an attractive growth market, but also has a portfolio, which matches well to the print and digital media range of Axel Springer AG”, Döpfner added.

“Our Group has many strong strategic partners at various levels of our media operations. Now, we are pleased to welcome Axel Springer AG, one of the leading media groups of Europe and Germany, as new shareholder through this transaction. We believe this partnership will definitely improve the existing strategic synergies further between the two groups.” stated the CEO of Dogan Yayin Holding, and Board Member of Dogan Group, Mehmet Ali Yalcindag.

Axel Springer will, on the other hand, sell 5.1 percent of its shareholding in the Dogan TV-Group currently amounting to 25 percent to Do?an TV’s parent company, Dogan Yayin Holding. The purchase price amounts to EUR 77 million, where an amount of EUR 30 million of which will be payable to Axel Springer until 2012.

Axel Springer nominated Prof. Dr. Helmut Thoma, director of RTL for many years, as member in the Board of Directors of Dogan Yayin Holding, who already represents the company in the Board of Directors of the Dogan TV-Group together with Dr. Jörg Schweikart, Head of Group Controlling, M&A and Legal of Axel Springer AG.

Both transactions are subject to the usual conditions, in particular to the legal and regulatory clearances.