Turkey’s Cukurova Holding is in talks with private equity firms Kohlberg Kravis Roberts & Co. and Texas Pacific Group to sell up to 49% of its television channel Show TV, Reuters reported. Cukurova is selling the stake to finance tax debts. Show TV is valued at $800 million minimum, with a valuation that could rise above $1 billion based on a multiple of 12 times earnings, Reuters said.
(Reuters) – Turkey’s Cukurova Holding is in talks with two U.S. private equity firms to sell as much as 49 percent of its television channel Show TV to finance tax debts, a source close to the matter told Reuters
Cukurova, which controls the country’s biggest mobile network Turkcell , is talking to KKR and Texas Pacific Group [TPG.UL], the source said.
“Cukurova Group wants to keep a 51 percent stake,” he said.
Show TV is valued at at least $800 million and the valuation could easily rise above $1 billion based on a multiple of 12 times earnings, the source said.
Turkcell recently said it received orders from tax offices for the sequestration of the Turkcell assets of Cukurova for 1.68 billion lira ($1.06 billion) due to tax debts.
The source said Cukurova’s other units including Digiturk and Genel Enerji may be subject to stake sales to finance the tax debts.
(Reporting by Asli Kandemir; Editing by Ibon Villelabeitia and Erica Billingham)