Macquarie Media Group, Australia's biggest commercial radio operator, agreed to buy Taiwan Broadband Communications in a A$1.19 billion (US$890 million) deal that will give it 12 percent of Asia's third-largest cable television market.
Macquarie Media will buy the cable-TV network from US buyout firm Carlyle Group, which acquired the company in July 1999.
Macquarie Bank Ltd, Australia's biggest investment bank, will take a 40 percent equity stake in Taiwan Broadband.
Taiwan Broadband can increase its share of the nation's A$2.1 billion cable-TV market to 33 percent under local rules.
Macquarie Media wants to expand the business, its first purchase since going public last month, by acquisitions and by offering phone, Internet and TV on a digital network, chief executive Alex Harvey told analysts at a briefing.
The takeover "highlights the international plans and opportunities that Macquarie Media has," said Atul Lele, who helps manage the equivalent of about US$378 million at White Funds Management in Sydney.
Macquarie Media owns 85 radio stations in regional Australia, making it the nation's largest operator of commercial radio licenses.
The company raised A$937 million selling shares at A$2.75 apiece last month. Macquarie Bank retained a 20 percent stake in Macquarie Media after the IPO.
Shares of Macquarie Bank added A$0.34 to A$67.64.
Washington-based Carlyle, manager of the largest US buyout fund, paid about US$200 million for Taiwan Broadband. The firm has more than US$34.9 billion under management, according to its Web site.
Macquarie Media will pay A$411 million for 60 percent of Carlyle's stake and Macquarie Bank will pay A$274 million for the rest, according to the statement. The companies also arranged debt of A$576 million for Taiwan Broadband.
"The acquisition positions us well to participate in any further consolidation opportunities in the cable television industry in Taiwan," Macquarie Media chairman Tim Hughes said.
The fund may make one or two acquisitions for Taiwan Broadband, Harvey said yesterday.
The takeover met Macquarie Media's conditions for acquisitions of "stable earnings and strong free cash flow," Hughes said.
"Macquarie is willing to pay a high price because the business can now expand into the cable modem and cable phone operations, the so-called voice-video-data services," said Gary Tsai (蔡俊榮), vice president of China Network Systems Co, Taiwan's leading operator with 1.1 million clients.
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