Dogan Sirketler Grubu Holding AS (DOHOL), the owner of Turkey’s biggest media company, surged the most in almost four months on bets shareholders will benefit from a planned merger with unit Dogan Yayin Holding AS. (DYHOL)
The shares rose 8.8 percent to 0.74 lira at 10:21 a.m. in Istanbul in the biggest advance since Dec. 25. More than 34 million shares changed hands, or 4.4 times the three-month daily average, according to data compiled by Bloomberg. Dogan Yayin climbed 12 percent, the most since November 2012, to 0.57 lira. The Borsa Istanbul 100 (XU100) index added 0.2 percent.
Dogan will take over Dogan Yayin, the companies said in separate public filings after the market closed yesterday. Investors who object to the proposed deal will have the right to sell stock at 0.67 lira for each Dogan Holding share and 0.5 lira each for Dogan Yayin, according to the statements.
“Both companies were trading at significant discounts over their net asset values,” Haydar Acun, who manages the Sardis Turkish Equity Fund, said by phone in Istanbul. “The holding company will be acquiring the media company’s assets for cheap. There would also be significant cost savings after.”
The merger plan lifted other Dogan companies listed in Istanbul, too. Hurriyet Gazetecilik ve Matbaacilik AS rose 13 percent in the biggest surge since January 2011. Dogan Gazetecilik AS (DGZTE) increased 7.4 percent, its first gain in four days.
Dogan Holding, Hurriyet and Dogan Gazetecilik are among the Sardis fund’s top 10 holdings, according to March data published on the its website.
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