WINNIPEG – Hot on the heels of its purchase yesterday of Super FM in Turkey, CanWest Global Communications announced today that a bid it’s a part of won the right to acquire another station, Metro FM
Following completion of an auction conducted earlier today by the Turkish Savings and Deposit Insurance Fund (the Fund), Pasifik Televizyon Ve Radyo Yayinciligi Ticaret A.S. (Pasifik) has been awarded the right to acquire the station which has a national reach in Turkey, just like Super FM.
Pasifik is a wholly-owned subsidiary of Turkcom Iletisim Hizmetleri A.S. (Turkcom). The total consideration bid by Pasifik for Metro FM was US$22.85 million, which will be payable in cash on completion of the acquisition. The transaction, which is subject to regulatory approvals by certain Turkish authorities and the Fund, is expected to be completed within the next 90 days.
CanWest’s wholly-owned subsidiary, CGS NZ TV Shareholdings (Netherlands) B.V. (CGS) has entered into certain agreements with Pasifik and Turkcom whereby CGS will through a Turkish subsidiary provide certain non-regulated operational, sales representation and advisory services to Metro FM on a fee-for-service basis.
Subject to a relaxation in current foreign ownership restrictions and receipt of all necessary regulatory approvals, CGS has an entitlement to acquire up to a 75% interest in Metro FM.
According to the CanWest release, Metro FM is Turkey’s most popular English-language national radio station. “Metro FM’s English-language music programming appeals to a young affluent urban audience and also to visiting tourists, audiences with high disposable income that are of great interest to advertisers. Metro FM’s 4.9% market share is greater than the combined market shares of the next two most popular national stations broadcasting in the same English-language music format. The station’s reach extends to approximately 40% of Turkey’s population – about 28 million people,” says the release.
This announcement follows CanWest’s announcement yesterday that it had acquired a 25% interest in Super FM, one of the most popular radio stations in Turkey, in partnership with Turkcom, and is consistent with the company’s desire to expand internationally.
Look for more to come from Turkey by CanWest.
“The Fund will be auctioning several additional media operations over the next two weeks. Turkcom is currently considering its participation in these upcoming auctions If it is successful in acquiring additional media assets in this process, CGS will have similar rights to provide certain non-regulated operational, sales representation and advisory services to those additional assets, as well as having, subject to relaxation in current foreign ownership restrictions and receipt of all necessary regulatory approvals, entitlements to acquire up to 75% interests in those additional assets,” explains the release.
