MBK to buy Taiwan cable firm for $1.6 billion: reports
China Network Systems, Taiwan’s largest cable TV operator, has decided to sell itself to MBK Partners, in a deal expected to fetch up to $1.6 billion, according to media reports on Monday.
CNS hopes to sign a deal sometime this week, with the expected price tag at $1.6 billion, the Asian Wall Street Journal reported, citing people familiar with the matter.
The deal would equate to T$45,000 (US$1,360) per subscriber, with a total price expected at T$51 billion, Taiwan’s Economic Daily reported separately.
MBK, a private equity firm founded last year by a former Carlyle Group (CYL.UL: Quote, Profile, Research) partner, along with Newbridge Capital (NB.UL: Quote, Profile, Research), were the two finalists in the bidding for CNS, according to previous media reports.
Others interested in the purchase included KKR (KKR.UL: Quote, Profile, Research) and the private equity arm of Goldman Sachs (GS.N: Quote, Profile, Research).
CNS holds about a 27 percent share in Taiwan’s cable TV market, Asia’s third largest behind Japan and China.
The auction is being handled by Morgan Stanely (MS.N: Quote, Profile, Research).
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