The National Communications Commission (NCC) yesterday said it is to hold an administrative hearing on Asia Pacific-Telecom chairman Lu Fang-ming’s (呂芳銘) bid to purchase Taiwan Broadband Communications (TBC), the nation’s third-largest multiple service operator, adding that Lu would be asked to present his case at the commission.
Earlier this year, Lu announced he had signed a sales and purchase agreement with Macquarie’s Singapore branch to acquire the Singapore-listed Asia Pay Television Trust (APTT), which owns 100 percent of TBC, adding he has purchased the APTT with 80 percent of funding coming from himself and 20 percent from Hon Hai chairman Terry Gou (郭台銘).
Market observers said that Asia Pacific-Telecom took an indirect route to acquire TBC because of regulations that ban political parties, the government and the military from investing in the nation’s media outlets and cable systems.
The state-run Taiwan Railways Administration is the second-largest shareholder in Asia Pacific-Telecom.
NCC spokesperson Wong Po-tsung (翁柏宗) announced the investment structure of the proposed deal during the news conference.
Wong said that Lu and Kuo purchased the Macquarie Asian Pay Television Trust (MAMPL), that manages APTT.
“Based on the sales and purchase agreement signed between Lu, Kuo and MAMPL, the acquisition would allow them to indirectly manage the TBC,” Wong said.
Wong said the sources of funding for the deal would be key in the review of the case.
The transaction must not have funding from the government, political parties or the military, Wong said, adding that nor can it have funding from China.
Meanwhile, Wong said the case would also be reviewed based on the criteria listed in Article 15 of the Cable Radio and Television Act (有線廣播電視法), which states that foreign applicants investing cable television business shall not affect national security, impair or disadvantage overall industrial development, hinder fair competition or make competition restraints.
Wong said the deal cost US$45 million, with 70 percent of the funds coming from bank loans. The remaining 30 percent would be jointly funded by Lu (US$10.8 million) and Kuo (US$2.7 million).
The acquisition was approved by the Fair Trade Commission in August, which viewed the case as an investment in a holding company or a fund management firm and a merger between conglomerates.
As to the Far Eastern Telecommunications’ (FET) bid to invest in the Chinese Network Systems (CNS) through the subscription of the corporate bonds issued by a subsidiary of the Morgan Stanley, Wong said that they told Morgan Stanley on Monday last week of the need to submit documents about the proposed investment to the commission, including the contracts between Morgan Stanley and FET, and between Morgan Stanley and the banks, as well as the contract governing FET’s purchase of the corporate bonds.
Contracts submitted to the commission must be in English and Chinese, he said.
“We have to cross-examine these documents to ascertain the relationship between Morgan Stanley and FET,” he said, adding that the commission does not exclude the possibility of hosting a public hearing for the transaction.
The commission has yet to receive all the required documentation from Morgan Stanley, he said.
The NCC gave its conditional approval in January for Morgan Stanley’s planned acquisition of CNS.
The Investment Commission suspended the review of case last month and returned the case to the NCC for a second review, citing concerns that FET might use the deal to evade regulations prohibiting investments in media outlets by the government, political parties and the military.
The Japan-Taiwan Exchange Association has cautioned Japanese travelers to be vigilant against pickpockets at several popular tourist spots in Taiwan, including Taipei’s night markets, the Yongkang Street area, Zhongshan MRT Station, and Jiufen (九份) in New Taipei City. The advisory, titled “Recent Development of Concerns,” was posted on the association’s Web site under its safety and emergency report section. It urges travelers to keep backpacks fully zipped and carried in front, with valuables placed at the bottom of the bag. Visitors are advised to be especially mindful of their belongings when taking photos or speaking on the phone, avoid storing wallets and
ENDORSING TAIWAN: Honduran presidential candidate Nasry Afura said that Honduras was ‘100 times better off’ when it was allied with Taipei The Ministry of Foreign Affairs yesterday said it would explore the possibility of restoring diplomatic relations with Honduras based on the principle of maintaining national interests and dignity. The ministry made the remarks in response to reporters’ questions regarding an article titled: “Will Taiwan Regain a Diplomatic Ally?” published in The Diplomat on Saturday. The article said Honduras’ presidential election in November could offer Taiwan the chance to regain an ally, as multiple candidates have promoted re-establishing diplomatic relations with Taiwan. Honduras severed diplomatic ties with Taiwan in March 2023 in favor of Beijing, but since switching its diplomatic recognition,
Scoot announced yesterday that starting in October, it would increase flights between Taipei and Japan’s Narita airport and Hokkaido, and between Singapore and Taipei. The low-cost airline, a subsidiary of Singapore Airlines, also said it would launch flights to Chiang Rai in Thailand, Okinawa and Tokyo’s Haneda airport between December and March next year. Flights between Singapore and Chiang Rai would begin on Jan. 1, with five flights per week operated by an Embraer E190-E2 aircraft, Scoot said. Flights between Singapore and Okinawa would begin on Dec. 15, with three flights per week operated by Airbus A320 aircraft, the airline said. Services between Singapore
The Mainland Affairs Council (MAC) yesterday announced a ban on all current and former government officials from traveling to China to attend a military parade on Sept. 3, which Beijing is to hold to mark the 80th anniversary of the end of the Second Sino-Japanese War. "This year marks the 80th anniversary of the end of World War II and the Republic of China’s victory in the War of Resistance [Against Japan]," MAC Deputy Minister and spokesperson Liang Wen-chieh (梁文傑) told a regular news briefing in Taipei. To prevent Beijing from using the Sept. 3 military parade and related events for "united
RSS