Dogan Climbs to One-Month High on Expansion Bets: Istanbul Mover

Dogan Sirketler Grubu Holding AS (DOHOL), the owner of Turkey’s biggest media company, rose for a second day to a one-month high on speculation it will benefit from expansion plans.

The stock gained 1.8 percent to 1.13 liras at the close in Istanbul, extending its two-day rally to 4.6 percent. Almost 36 million shares changed hands, or 6 percent more than the three- month daily average. The Borsa Istanbul National 100 (XU100) index rose 0.6 percent, extending this week’s gain to 3.1 percent.

Dogan’s two day advance, the biggest since March 6, came after Chairwoman Begumhan Dogan Faralyali told Bloomberg yesterday that the company is planning to buy media assets in eastern Europe and the Middle East. Chief Executive Officer Yahya Uzdiyen said the same day Dogan may bid in government auctions for power plants. The holding company owns Dogan Yayin Holding AS (DYHOL), a media group, and closely held Dogan Enerji AS, an energy company.

“Dogan has deep pockets for new investments,” Emir Bolen, an analyst at Global Securities in Istanbul, said in a phone interview today. “Possible acquisitions of energy assets this year would provide the shares with a short- and medium-term catalyst and that’s reflected in this two-day advance.”

Dogan had net cash of $1.2 billion as of September 2012, according to a presentation on the company’s website. Its energy unit has investments across Turkey in hydropower and wind. It also has a stake in an oil field in Arbil, Iraq, which has recoverable reserves of 136 million barrels, according to the presentation.

The company reported net income of 155.7 million liras ($87 million) in 2012, from a loss of 753.7 million liras a year earlier, according to a filing with Borsa Istanbul yesterday. Sales climbed 10 percent to 3.16 billion liras in the period.

Global Securities has a buy recommendation for the shares and a 12-month price target of 1.44 liras, according to a March 19 report by Bolen and Bertan Ilbak. Eight analysts recommend investors buy the stock and two say hold, according to data compiled by Bloomberg.

To contact the reporter on this story: Taylan Bilgic in Istanbul at tbilgic2@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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