Macquarie exits Taiwan Broadband as IPO raises $1.1b
Two funds run by Macquarie have exited Broadband Communications after the Taiwan pay-TV operator’s holding company raised S$1.39 billion ($1.1 billion) through an IPO. The offering by Asian Pay Television Trust (APTT) – of which Broadband Communications is the sole asset – is the second-largest Singapore IPO this year after Mapletree Greater China Commercial Trust raised $1.4 billion in February.
According to a regulatory filing, APTT sold 1.4 billion shares at S$0.97 apiece, which translates into a projected yield of 8.51% for 2014. Of the total offering, 65.2% went to public investors, 31.8% to cornerstone investors and the sponsor, Macquarie Capital, took 3%.
Singapore-listed Macquarie International Infrastructure Fund (MIIF), which owned 47.5% of Taiwan Broadband, has received well in excess of the floor price of S$469.5 million set in April. The fund took a 20% stake in Taiwan Broadband for $161.8 million in 2007, plus an additional sum in senior debt. It took its holding to 47.5% in 2011 and puts the full cost of acquisition at S$479.2 million.
Macquarie Korea Opportunities Fund paid A$392 million (then $367 million) for a 60% stake in the company in 2008 but subsequently reduced its holding. The stake was bought from Macquarie Media Group, which completed a full buyout of Taiwan Broadband three years earlier in partnership with Macquarie Bank. The $883 million deal included about $375 million in debt.
The seller was The Carlyle Group, which bought a majority interest in the company in 1999 and used it as a consolidation platform for cable TV stations.
Taiwan Broadband has stakes in five cable TV networks in northern and central Taiwan, with over 150 channels serving more than 750,000 households. The company also provides broadband internet services.
Macquarie and J.P. Morgan were joint global coordinators for the offering, with DBS Group and CIMB Group participating as joint bookrunners and underwriters.
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