By Rick Carew
Private-equity firm MBK Partners LP has started a process to
sell its stake in Korean cable-TV operator C&M Co., kicking off
the process for a deal that could fetch bids between $2.5 billion
and $3 billion, according to a person familiar with the
situation.
The deal may spark a consolidation of Korea's fragmented cable
market as rivals seek to get access to C&M's 2.4 million
subscribers and strong position in the metropolitan Seoul market.
The bidding process could see private equity bidders team up with
cable operators to help fund an acquisition, according to the
person.
MBK and Macquarie Group Ltd. took control of the Korean cable
operator in 2008. They have hired Goldman Sachs Group Inc. to run
the sale process and are sending out initial financial information,
known as "teasers," to prospective buyers this week, the person
said.
In 2013, C&M reported 310 billion Korean won (US$286
million) in earnings before interest, taxes, depreciation, and
amortization on 660 billion Korean won in revenue.
Private-equity firms are expecting 2015 to be a major year for
exits across the region as they want to return capital to
investors. The sale would mark another exit for Asia-focused MBK
Partners after it completed the sale of Chinese waste-to-energy
company GSE Investment Corp. in December.
Write to Rick Carew at rick.carew@wsj.com
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