The National Communications Commission (NCC) confirmed yesterday that it received an application for foreign investment in China Network Systems Co, adding that it would investigate whether the deal would generate issues of media monopolization.
China Network Systems became the focus of public attention after Far EasTone Telecommunications, in a tie-up with Morgan Stanley Private Equity Asia, said last week that it would soon own a majority stake of the nation’s largest multiple-cable service operator via acquisition of corporate bonds to be issued by North Haven Private Equity Asia IV LP (NHPEA), adding that the transaction is to cost the nation’s third-largest telecom carrier NT$17.12 billion (US$539 million).
NHPEA in turn is to buy a 60 percent stake in China Network Systems from South Korean private equity firm MBK Partners LP, Far EasTone said.
Because the Cable Television Act (有線電視法) bans political parties, the government and the military from directly investing in media outlets, Far EasTone has to make an indirect investment in China Network Systems, as about 2.89 percent of Far EasTone’s shares are owned by four government funds.
The application was filed by Netherlands-based NHPEA Chrome Holding BV, which belongs to Morgan Stanley Private Equity Asia, the commission said.
It did not reveal further details about the application, saying that it has yet to begin reviewing the case.
Commission spokesperson Yu Hsiao-cheng (虞孝成) said the case would be reviewed based on regulations the commission is obligated to enforce, adding that it would review the case in light of issues of media monopolization as well.
Yu said the commission would ensure shareholders met the requirements of the law before it would approve the application.
Further deliberation among commissioners was required before a ruling could be made on whether Far EasTone could — as a creditor — manage cable services owned by China Network Systems, Yu said.
China Network Systems has 1.29 million cable television service subscribers nationwide. The cable service operator suffered two previous setbacks in mergers with local enterprises.
The first issue was in 2011, when it was to be sold to Want Want China Times Group for NT$76.2 billion. The deal was canceled because Want Want failed to meet conditions set by the commission in 2012 to ensure diversity of opinion among its broadcasts.
The second setback was last year, when it was to be acquired by Ting Hsin International Group, which founded fourth-generation service provider Taiwan Star. The transaction was reported to top NT$72.5 billion.
The acquisition was called off after Ting Hsin was found to have sold products containing adulterated oils in food products.
An increase in Taiwanese boats using China-made automatic identification systems (AIS) could confuse coast guards patrolling waters off Taiwan’s southwest coast and become a loophole in the national security system, sources familiar with the matter said yesterday. Taiwan ADIZ, a Facebook page created by enthusiasts who monitor Chinese military activities in airspace and waters off Taiwan’s southwest coast, on Saturday identified what seemed to be a Chinese cargo container ship near Penghu County. The Coast Guard Administration went to the location after receiving the tip and found that it was a Taiwanese yacht, which had a Chinese AIS installed. Similar instances had also
GOOD DIPLOMACY: The KMT has maintained close contact with representative offices in Taiwan and had extended an invitation to Russia as well, the KMT said The Chinese Nationalist Party (KMT) would “appropriately handle” the fallout from an invitation it had extended to Russia’s representative to Taipei to attend its international banquet last month, KMT Chairman Eric Chu (朱立倫) said yesterday. US and EU representatives in Taiwan boycotted the event, and only later agreed to attend after the KMT rescinded its invitation to the Russian representative. The KMT has maintained long-term close contact with all representative offices and embassies in Taiwan, and had extended the invitation as a practice of good diplomacy, Chu said. “Some EU countries have expressed their opinions of Russia, and the KMT respects that,” he
VIGILANCE: The military is paying close attention to actions that might damage peace and stability in the region, the deputy minister of national defense said The People’s Republic of China (PRC) might consider initiating a hack on Taiwanese networks on May 20, the day of the inauguration ceremony of president-elect William Lai (賴清德), sources familiar with cross-strait issues said. While US Secretary of State Anthony Blinken’s statement of the US expectation “that all sides will conduct themselves with restraint and prudence in the period ahead” would prevent military actions by China, Beijing could still try to sabotage Taiwan’s inauguration ceremony, the source said. China might gain access to the video screens outside of the Presidential Office Building and display embarrassing messages from Beijing, such as congratulating Lai
Four China Coast Guard ships briefly sailed through prohibited waters near Kinmen County, Taipei said, urging Beijing to stop actions that endanger navigation safety. The Chinese ships entered waters south of Kinmen, 5km from the Chinese city of Xiamen, at about 3:30pm on Monday, the Coast Guard Administration said in a statement later the same day. The ships “sailed out of our prohibited and restricted waters” about an hour later, the agency said, urging Beijing to immediately stop “behavior that endangers navigation safety.” Ministry of National Defense spokesman Sun Li-fang (孫立方) yesterday told reporters that Taiwan would boost support to the Coast Guard