Doğan to sell stake in its media group

Bloomberg

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Doğan aims to sell a minority stake in Doğan Media Group, or DMG, to a "strategic partner," yesterday’s filing said, without giving further details.

The company is not considering a bank or a private equity firm, and management will remain, Alpay Güler, investment relations coordinator at DMG, said by phone. Turkey's advertising market may shrink 3 to 5 percent this year as the effect of the global crisis on the economy increases, DMG Chief Executive Officer Mehmet Ali Yalçındağ said this week. DMG needs cash as it has about YTL 1.2 billion ($722 million) of net debt and ad revenue in the fourth quarter is predicted to fall, claimed Gökhan Canıtez, an analyst at Tera Brokers in Istanbul.

"A strategic partner will restore investors' confidence over the company, that's why the shares are rising," Canıtez said. Confidence was hurt after Turkey's Capital Markets Board asked prosecutors to press charges against the company over newsprint imports, he said.

Daily News is a Doğan Media Group publication