Doğan and Lottomatica call off plans
Güncelleme Tarihi:
Reuters
Oluşturulma Tarihi: Nisan 10, 2009 00:00
ISTANBUL - Turkey's Doğan Holding and Italian partner Lottomatica have pulled out of a tender for the privatization of Turkey's national lottery, the two companies said yesterday.
The partners had met preliminary requirements for the tender of national lottery company Milli Piyango.
"A decision has been taken not to bid in a tender for the Turkish games of chance license due to current conditions," Doğan Holding said in a statement to the Istanbul Stock Exchange.
Tax troubles
Last month, Turkish tax authorities froze the bank accounts of Doğan Holding's media unit Doğan Media Group, or DMG.
The tax office also blocked the sale of stakes in the group companies of DMG, Turkey's largest media company, as part of a legal wrangle over a $500 million penalty for alleged tax violations.
A Lottomatica spokesman said it had dropped its bid because the tender was not coherent with its strategy.
"Lottomatica has looked closely at ... the operation. [The operation] foresees an upfront fee to obtain the license. Such a structure is not coherent with the strategy of allocating capital," Lottomatica spokesman said.
The Italian gaming company believes investment should be focused on the lottery activities rather than in acquiring the license, the spokesman said.
The global financial crisis has put on hold several privatizations or reduced interest in them due to a lack of credit.
Other groups that met preliminary criteria for the tender included Intralot, OPAP, the DAF Research and Development consortium, Austrian Lotteries, and Şans Oyunları Yatırım Holding, owned by Turkey's biggest mobile phone operator Turkcell.
Daily News is a Doğan Media Group publication.
"A decision has been taken not to bid in a tender for the Turkish games of chance license due to current conditions," Doğan Holding said in a statement to the Istanbul Stock Exchange.
Tax troubles
Last month, Turkish tax authorities froze the bank accounts of Doğan Holding's media unit Doğan Media Group, or DMG.
The tax office also blocked the sale of stakes in the group companies of DMG, Turkey's largest media company, as part of a legal wrangle over a $500 million penalty for alleged tax violations.
A Lottomatica spokesman said it had dropped its bid because the tender was not coherent with its strategy.
"Lottomatica has looked closely at ... the operation. [The operation] foresees an upfront fee to obtain the license. Such a structure is not coherent with the strategy of allocating capital," Lottomatica spokesman said.
The Italian gaming company believes investment should be focused on the lottery activities rather than in acquiring the license, the spokesman said.
The global financial crisis has put on hold several privatizations or reduced interest in them due to a lack of credit.
Other groups that met preliminary criteria for the tender included Intralot, OPAP, the DAF Research and Development consortium, Austrian Lotteries, and Şans Oyunları Yatırım Holding, owned by Turkey's biggest mobile phone operator Turkcell.
Daily News is a Doğan Media Group publication.