Carlyle Reaches $351M Deal To Exit From Taiwan’s Eastern Broadcasting

Taiwan Optical Platform Co., a Taiwanese telecommunication service provider, plans to acquire a majority stake in Eastern Broadcasting Co., a local TV station controlled by the Carlyle Group, for NT$11.12 billion (US$351 million).

Taiwan Optical Platform says in a filing that it is hoping to transform itself into a 4K high-definition TV operator after the completion of the transaction.

Carlyle Group reached a deal to sell its 61% stake in the Taiwanese TV channel operator to U.S. film maker Dan Mintz’s DMG Entertainment last December.

But two weeks ago, the Los Angeles-based DMG Entertainment walked away from the deal, which would have seen DMG Entertainment acquire an 80% stake in Eastern Broadcasting for US$600 million.

Under the new agreement, Taiwan Optical Platform would acquire a 61% interest from the Carlyle Group, as well as acquire additional shares from Eastern Broadcasting’s employees to boost its total stake to 65%.

In 2006, Eastern Media sold a 61% stake to Carlyle for an undisclosed amount. Carlyle has been reportedly seeking an exit since 2013 for as much as US$700 million, the final deal seems to have come below expectations.

Taiwan Optical Platform ranks as the fifth largest cable TV system operator in Taiwan with about 295,600 subscribers in central Taiwan and a 5.8% share in the local cable TV market.

Eastern Broadcasting directly owns eight domestic Taiwan television channels covering general news, financial news, variety, Chinese movie, foreign movie, drama and children.

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