Want Want China unsure about CNS purchase conditions

The National Communications Commission of Taiwan has agreed to the deal provided the Want Want-led group meets three conditions: severing all connections with the news channel of CTi, a nationwide cable network belongs to Want Want China Times Group; changing the news channel of its CTV network to non-news; and having news broadcasts on other CTV channels reviewed by independent editors.

Selling the news channel of the CTi network would be an option to meet the first requirement, an NCC official told Reuters.

"Those are the NCC's subjective opinions," said Yu-pei Chao, special assistant to the buyer group's chairman. "How thorough do they want the separations to be? We don't know. We have to evaluate if the conditions are achievable ... It still remains our target to close the deal."

MBK purchased CNS in 2007 for $1.5 billion. Three years later, it agreed to sell its 60% stake in the network to Want Want, a Chinese snack food group and media owner.

The communications regulator is sensitive to potential mainland influence on Taiwan's media, prompted by public concerns that a Want Want-backed CNS would promote China with favorable news stories.

The last delay to the CNS sale came in February, when regulators asked the buyer to provide more information about its intentions for the asset. It followed Want Want Chairman Tsai Yen-ming telling media that he would like to see Taiwan and China unified.

This is not the first time a private equity investor has run into trouble over a media exit in Taiwan. The Carlyle Group sale of local cable TV and broadband asset Kbro to the Tsai family in 2010 was stalled for nearly a year due to rules regarding government affiliates' ownership of media businesses.

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• Topics
• Greater China
• Exits
• MBK Partners
• Exit
• Taiwan (China)
• TMT