Taiwan's Hon Hai in talks to buy MBK-owned cable TV network – report
Hon Hai Precision Industry, a Taiwanese electronics manufacturer best known as Foxconn, is said to be in talks with MBK Partners to buy China Network Systems (CNS).
Hon Hai could pay up to TWD$64.8 billion (2.14 billion) for MBK's 60% stake in the company, The Economic Daily reported.
CNS is Taiwan's largest cable TV and broadband provider. Through the acquisition, Hon Hai aims to compete with Chunghwa Telecom, the island's biggest mobile phone and fixed network carrier.
Both companies have been awarded local 4G licenses and Hon Hai sees CNS' fixed-line network busienss as a means of matching Chunghwa, which currently has more than 10 million subscribers. These include 4.55 million broadband users and 1.24 million multimedia on demand (MOD) users.
Hon Hai is also in negotiations with Taiwan Mobile, a local mobile phone operator, over a potential tie-up.
Hon Hai is one of multiple parties interested in CNS, Reuters reported. It added that no deal is imminent and MBK could pursue an earlier plan to list the cable company in Singapore.
MBK bought CNS for $1.5 billion in 2006, including $840 million in debt and equity participation from co-investors. 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.
However, a longstanding trade sale agreement has yet to materialize amid regulatory concerns. The PE firm was then said to be looking to exit CNS through an IPO.
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