New Turkish law allows foreigners to grab big media share

Parliament passed a law doubling the size of stakes that they can hold.

New Turkish law allows foreigners to grab big media share

Turkey has paved the way for foreign investors to grab a bigger slice of its broadcasting companies, after parliament passed a law doubling the size of stakes that they can hold.

The new legislation means foreign investors can hold 50 percent of up to two broadcasters, and allows programmes in foreign languages and dialects. The state broadcaster already has a Kurdish language channel.

The law also lowers the amount channels pay the Radio and Television Supervision Agency out of their advertising revenue.

A young population coupled with one of the fastest-growing economies in the world, makes Turkey's media market attractive to investors. Turkey's growth rate in the third quarter of 2010 was 5.5 percent.

"We believe the long-awaited legislation will increase foreign interest towards Turkish media assets and might have some repercussions on the ongoing sale process of Dogan Media Group assets," brokerage Ekspres Invest said in a note.

U.S. private equity fund KKR, Time Warner and private equity fund Texas Pacific Group are among shortlisted bidders for assets in Dogan Yayin.

Turkey's leading media group owns major TV stations and mass circulation newspapers such as Hurriyet and Milliyet.

Analysts said the law would have a positive impact on Dogan Yayin shares, which traded 1 percent higher at 2.10 lira after also being boosted by a court ruling overturning 1.04 billion lira of tax penalties against the group's units.

"We will ... soon hold broadcasting licence tenders," Deputy Prime Minister Bulent Arinc told Reuters on Wednesday. "I expect around 1 billion lira ($629.7 million) revenue from the tenders." ($1=1.588 Turkish Lira)

Reuters

Last Mod: 17 Şubat 2011, 11:33
Add Comment