MBK exits Gala TV to EQT

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

In August, reports first surfaced that Gala TV was on the auction block, with Japanese electronics giant Sony Corporation reportedly making an NT$6 billion ($188 million) bid for the asset. Reports at the time noted that the pitch came from Sony's web division So-Net, which aimed to broadcast Gala TV's content portfolio on its acTVila platform if the deal was successful.

In a statement to press, Fredrik Åtting, a senior partner at EQT Asia said, "EQT has a lot of experience from Europe with new media platforms and digital channels. We have in total invested in four different cable system operators in Europe, [and hope] to bring that knowledge to help and support the management of Gala TV."

Taiwan's cable industry has largely been viewed as one of the most sophisticated in the world, with an 80% penetration rate into Taiwanese homes. According to Nielsen Taiwan, even at the height of the financial crisis, while media spend dipped across disciplines in 2009, radio and TV remained stable, largely attributed to inexpensive subscription rates, which are reportedly under $20 a month.

MBK Partners first invested in the company in December 2008 out of its MBK Partners I

Fund. The Korean firm has seen ample success in the Taiwanese media sector within the past year, completing the largest Asian private equity exit of 2010 when it sold its 60% stake in cable investee China Network Systems (CNS) to Want Want China Holdings for $2.4 billion. Bain Capital, Permira, Providence Equity Partners and Macquarie Group had all been involved in the bidding process, the exit coming three years after MBK originally bought CNS for $1.5 billion.

EQT Greater China has itself also seen an extremely active period. Last month, it acquired Classic Fine Foods Group from London-based Vestey Group, and in December it acquired leading Chinese bakery chain Qinyuan Bakery. That same month, it took a 30% stake in China's Modern Metal & Precision Holdings Ltd., an aluminum die casting manufacturer.

 

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• Topics
• Buyouts
• Greater China
• Media
• EQT Partners
• MBK Partners