MBK considers IPO for Taiwan’s CNS – report
MBK Partners is reportedly considering an IPO for China Network Systems (CNS), Taiwan’s largest cable TV and broadband provider, in place of a longstanding trade sale agreement that has yet to materialize amid regulatory concerns.
According to Bloomberg, the private equity firm is exploring the option of listing CNS as a business trust. Earlier this year, two funds managed by Macquarie exited Taiwan Broadband, the third-largest domestic cable TV operator, through the $1.1 billion IPO of Asian Pay Television Trust in Singapore. It was the city-state's second-largest listing of the year.
MBK announced the acquisition of CNS for $1.5 billion - including $840 million in debt and equity participation from co-investors - from Koo's Group and Star TV in October 2006. It agreed to sell its 60% holding for $2.4 billion to a group led by Chinese snack food and media conglomerate Want Want China Holdings three years ago.
The National Communications Commission of Taiwan agreed to the deal provided the Want Want-led group met 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.
The regulator said in February that these conditions hadn't been met, although an appeal against the decision has been filed with Taiwan's cabinet and a ruling is expected in September.
CNS claims to have more than 1.2 million subscribers across - a 20% market share - with a dominant position in Greater Taipei, Kaohsiung City and Tainan. Regulatory sensitivity about a sale to Want Want stemmed from concerns that CNS would promote China with favorable news stories.
This is not the first time a private equity investor has run into trouble over a media exit in Taiwan. The Carlyle Group's 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.
More on Media
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.