MBK's CNS exit stalled for third time

The National Communications Commission (NCC), Taiwan's broadcast regulator, wants local snack food maker and media owner Want Want China Holdings to prove its media outlets are operated on an independent basis from the Chinese government, an NCC official told Reuters.

This demand follows recent comments by Want Want's chairman to The Washington Post that he is eager to see Taiwan and China unified, awakening concerns in Taiwan about the Chinese government becoming involved in local media.

"We decided to ask the buyer to submit more information to clarify the questions we have and elaborate that its media are run independently," said Chen Kuo-lung, a NCC director. "We will ask the buyer to explain his comments in the Washington Post."

Want Want is expected to comply with this request by the end of February.

The last delay to the CNS sale came in October, when regulators again called into question Want Want's motivations. A group of regulators, academics and media experts questioned the reporting style of other Want Want media assets, concerned that the company would stifle freedom of speech initiatives at CNS.

One year ago, MBK said it would exit its 60% stake in CNS to Want Want for $2.4 billion, resulting in 2010's largest Asian private equity exit. Potential secondary buyers such as Permira, Bain Capital, The Blackstone Group, Providence Equity Partners and KKR were also drawn to the asset, as well as several corporate suitors.

The transaction was supposed to be a reminder that deals could still close in Taiwan, at time when other private equity transactions have been blocked or delayed. Such deals included The Carlyle Group's exit of local cable TV and broadband asset Kbro to the Tsai family in 2010, which was stalled for nearly a year due to rules regarding government affiliates' ownership of media businesses.

MBK purchased CNS in October 2006 for $1.6 billion, which means it is in line for a substantial gain should the transaction go through.

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• Topics
• Greater China
• Media
• Exits
• Exit
• Trade sale
• MBK Partners
• Media
• The Carlyle Group
• Bain Capital Asia
• Taiwan (China)