Winnipeg, Canada (ots/PRNewswire) -
- CanWest Has Option to Acquire 75% Interest in Metro FM, and Will
Provide Certain Advisory Services to the Turkish Radio Station
CanWest Global Communications Corp. today announced that,
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 assets of Metro FM, a radio station
with national reach in Turkey. 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.
Metro FM is Turkey's most popular national radio station
broadcasting in the English-language popular music genre. 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.
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.
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
"We are delighted that Turkcom has been the successful bidder for
Metro FM, and that we will play a meaningful role in the station,"
said Tom Strike, President of CanWest MediaWorks International.
Gregory M. Kiez, a director of Global Investment Holdings, and Mr.
Fatih Akol, both speaking on behalf of Turkcom, said "We are very
pleased with the success of Pasifik's bid for Metro FM. We believe
that there is potential for considerable growth at Metro FM, both
from building upon the station's appeal to its target audience and by
expanding its relationships with advertisers. We believe that our
operational relationship with CanWest will be an important asset as
we take advantage of CanWest's extensive international experience in
running profitable media operations."
Turkcom is a private Turkish investment company advised by Global
Yatirim Holdings A.S. (Global Investment Holdings).
CanWest Global Communications Corp. (NYSE: CWG; TSX: CGS.SV and
CGS.NV, www.canwestglobal.com), an international media company, is
Canada's largest media company. CanWest is Canada's largest publisher
of daily newspapers, and also owns, operates and/or holds substantial
interests in conventional television, out-of-home advertising,
specialty cable channels, Web sites and radio networks in Canada, New
Zealand, Australia and Ireland.
Global Investment Holdings is a holding company publicly listed on
the Istanbul stock exchange (ISE: GLYHO, www.globalyatirim.com), with
operations in the infrastructure, energy and finance sectors in
Turkey, including a wholly-owned finance unit, Global Menkul Degerler
A.S. ("Global Securities") (www.global.com.tr) which has been the
leading independent brokerage and corporate finance firm in Turkey
@@start.t1@@ Backgrounder on Turkey
Population: 72 million
Area: 780,000 square kilometers, 301,000 square miles
Turkey ranks 17th in global economy, based on GDP
GDP: US $300 billion (2004)
Per Capita GDP: US $4,172 (2004)
GDP growth rate 7.8% (2004)
52% of exports go to EU countries, which in turn provide 46% of Turkish
Memberships: NATO, OECD, IMF, and WTO
Seeking membership in EU, negotiations set to begin October 2005.@@end@@
Modern Turkey is a secular multi-party democracy. Economic reforms
over the past several years, including privatization of state-owned
industries, have strengthened the role of the private sector and
increased the influence of market forces on the Turkish economy.
Turkey has achieved rapid economic growth since 2001, when the
country implemented a number of structural economic reforms.
Today, Turkey welcomes foreign investment. Foreign direct
investment is expanding rapidly as the government actively seeks to
attract more investors by creating a favourable investment
environment through changes in its tax and legal systems.
The Turkish Media:
Total Advertising Market
Advertising should benefit from the sustained and rapid economic
growth, and reducing inflation rate that have characterized the
Turkish economy over the past four years, and particularly since
Turkey adopted an economic and structural reform program under the
guidance of the IMF.
Turkey has a relatively low advertising level, with advertising
expenditures currently representing only 0.41% of GDP in comparison
to other countries in similar stages of economic development, such as
Hungary (2.0% of GDP), Poland (1.4% of GDP) and Bulgaria (1.2% of
GDP), suggesting considerably potential for growth in spending on
advertising in Turkey.
The total Turkish advertising market was US$1.23 billion in 2004,
40% higher than the previous year's US$880 million and with
consistent growth since 2001.
Total advertising spending on radio was $46 million in 2004, with
significant growth in spending in each of the previous two years.
Kral FM, Super FM and TRT FM are the leading national radio
stations with many smaller and local stations. The pattern of
ownership is similar to television, with a rapid expansion of private
sector stations following the legal removal of the state monopoly in
The Turkish government created a regulatory and licensing body -
RTUK - in 1994. RTUK regulates the amount of time available for
commercials on radio. No advertising is permitted of alcoholic
beverages, tobacco products or prescription or non-prescription
September 22, 2005
CanWest Global Communications Corp
(Note: The above material compiled from various reliable sources,
both published and unpublished, and is thought to be accurate at time
ots Originaltext: CanWest Global Communications Corp.
Im Internet recherchierbar: http://www.presseportal.ch
For further information: Geoffrey Elliot, Vice President, Corporate
Affairs, CanWest Global Communications Corp., Tel: +1-(204)-956-2025,
Fax: +1-(204)-947-9841, firstname.lastname@example.org