Taiwan’s Wei family confirms acquisition of MBK-owned CNS
Taiwan-based food and drinks conglomerate Ting Hsin International Group has agreed to buy a majority stake in local TV operator China Network Systems (CNS) from MBK Partners.
Ting Hsin, set up by the Wei family, confirmed the acquisition in a joint press conference with CNS on Monday. The value of the transaction was not disclosed but Reuters reported that it is around $2.4 billion including debt.
The Wei family owns Hong Kong-listed Tingyi Holding, which is best known for the Master Kong snack noodle brand. The company is now seeking to diversify business into telecom and media. It also controls Taiwan Star Telcom, which launched 4G services on Monday.
The negotiations over the acquisition began in the middle of the year. CNS's legal officer Chien-chih Liu said the buyer was chosen based on numerous factors in addition to price, including the ability to comply with Taiwan's regulations on foreign and Chinese investment, as well as involvement with political parties, the government and the armed forces.
The transaction is subject to regulatory approval.
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. In 2010, the private equity firm 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.
However, the trade sale agreement failed to materialize as the NCC said Want Want-led group hadn't met with certain conditions. Last year, MBK was said to launch an IPO for CNS as a business trust.
If the transaction is approved by local regulators, it will be the second exit that foreign private equity firms have been completed in Taiwan media industry this year. Early this month, EQT Partners exited Gala TV to the management of local conglomerate Formosa Plastics Group.
The private equity firm teamed up with Lin Poa-Chuan, CEO of the TV operator, to acquire undisclosed stakes in the company from MBK in 2011.
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