US Carlyle Group Becomes Shareholder of Taiwan Mobile

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) September 16, 2009 -- The takeover of Kbro, which is subject to regulatory approval, will create Taiwan's largest provider of phone, web and TV “convergence” services.

Currently the island's TV viewers are rapidly switching to digital services.The perchase in such a moment will definitely offer higher margins for operators.

Carlyle will receive cash of just NT$440m ($12m) and 589m shares, or a 15.5 per cent stake in Taiwan Mobile, the country's second-largest phone carrier. The buyer will also assume about $800m of Kbro's debt.

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US Carlyle Group Becomes Shareholder of Taiwan Mobile

The US fund stressed yesterday its long-term commitment to its stake in Taiwan Mobile, where it will become the second largest shareholder after the country's Tsai family. “We are looking forward to making Taiwan Mobile a bigger, better company,” said Gregory M Zeluck, a Carlyle managing director.

Taiwan Mobile's cable-TV unit is its fastest growing division but boasts a market share of only 6 per cent, which will rise to 32 per cent after the takeover. The combined cable-TV business will have 1.6m customers, making it the country's largest provider.

Analysts said the deal would give Taiwan Mobile economies of scale and throw down the gauntlet to rival providers.

cable-TV business     Digital Services     market share     Taiwan Mobile