Carlyle to pay $483m for GE's AsiaSat stake, launch take-private

In operation since 1988, AsiaSat has a network of six satellites covering more than 50 countries in the Asia Pacific region. It serves 150 public and private television and radio broadcasters, offering more than 450 channels, and also provides private VSAT systems broadband multimedia services for home and business users.

GE and Chinese state-owned conglomerate CITIC Group each have a 50% voting interest in Bowenvale, which holds 291.2 million shares, or a 74.43% stake, in AsiaSat. GE's economic interest in the vehicle is 49.50%, according to regulatory filing.

Carlyle Asia Partners IV - which closed earlier this year at $3.9 billion - will acquire GE holding in Bowenvale for HK$24.82 per share, giving it an approximately 36.84% indirect interest in AsiaSat. The offer price will rise to HK$26.00 per share in the event of a "market disruption event," defined as a decline of 10% or more in the Hang Seng Index prior to the deal closing.

Assuming the transaction goes through, Carlyle and CITIC will offer to buy the remainder of the company in accordance with Hong Kong's takeovers legislation. They are willing to pay HK$24.82 per share, which represents a 8.07% discount to the December 23 closing price. The offer could rise to HK$26.00 per share in certain circumstances.

Bowendale was created in late 2006 when GE sold its shares in Europe-based satellite broadcaster SES Global back to the company, receiving SES' stake in AsiaSat as partial payment. CITIC and GE sought to take AsiaSat private in 2007 through a $295 million deal, but this was blocked by the US government. Another buyout attempt in 2012, this time led by a management-backed trust, was rejected by shareholders.

AsiaSat reported sales of HK$1.49 billion in 2013, down from HK$1.78 billion the previous year, largely due to the introduction of India's Finance Act in 2012, which imposes a tax on the sales of offshore satellite services to customers that operate in India.

Net profit fell to HK$747.5 million from HK$914.4 million over the same period. The 2012 figure was inflated by the sale of SpeedCast to TA Associates. The former subsidiary went public in Australia in August.

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• Topics
• Buyouts
• Technology
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• Greater China
• PIPEs
• PIPE
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• The Carlyle Group
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