Far EasTone withdraws USD2.4bn bid for CNS

9 Feb 2017

Taiwanese multi-service operator Far EasTone Telecommunications (FET) is withdrawing its TWD74.5 billion (USD2.39 billion) buyout bid for cable TV operator China Network Systems (CNS), according to the Taipei Times.

As previously reported by CommsUpdate, in July 2015 FET inked an agreement with Morgan Stanley Private Equity Asia (MSPE Asia) to buy bonds to be issued by the latter company’s North Haven Private Equity Asia IV (NHPEA) unit, which would in turn acquire a 60% stake in CNS from South Korean private equity firm MBK Partners. Now, however, following a prolonged regulatory review of the proposed deal, the parties involved have agreed to call time on it, with CNS cited as saying in a statement: ‘To prevent the review of the deal from affecting the company’s operational development and plans, the company, MBK and MSPE have agreed to initiate the revocation [of the bid].’

Taiwan, China Network Systems (CNS), Far EasTone (FET)