EQT plans to exit Taiwan cable TV unit

Potential buyers include domestic industrial conglomerate Formosa Plastics Group and local financial investors, The Economic Daily reported. Poa-Chuan Lin, CEO of GTV, confirmed EQT's planned sale.

Established in 1997, Gala is one of Taiwan's leading TV content providers with four channels carried by all major cable operators. Its content includes in-house produced, commissioned and acquired material. The company's Chinese-language library has proved attractive for both domestic and to overseas viewers in places such as China and Southeast Asia.

According to AVCJ Research, EQT teamed up with Lin in 2011 to acquire undisclosed stakes in the company from existing investors - MBK Partners and Taiwan entertainment mogul Yang Teng-Kuei - for NT$6 billion. MBK received $142.6 million.

MBK Partners first invested in GTV in December 2008 out of its MBK Partners Fund I, picking up a 70% interest in the company for $100 million.

In 2002, Formosa Plastics Group agreed to pay NT$400 million for a 23% stake in GTV.

This is the latest deal in a string of potential exits by foreign investors from Taiwan's TV industry. Last week, Hon Hai Precision Industry, a Taiwanese electronics manufacturer better known as Foxconn, was said to be in talks with MBK Partners to buy China Network Systems (CNS).

Meanwhile, Eastern Media International is bidding for The Carlyle Group's 61% stake in local TV operator Eastern Broadcasting, which is worth around NT$20 billion, The Economic Daily reported.

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• Topics
• Greater China
• Exits
• Media
• Media
• Taiwan (China)
• EQT Partners
• Exit
• Trade sale
• MBK Partners