Carlyle Group’s plan to pump US$1bn into Taiwan Mobile has hit a regulatory hurdle.
The deal could be in violation of Taiwanese law that prohibits state ownership of media bodies.
Under the terms of the deal, Carlyle was to exchange its stake in…
Carlyle Group’s plan to pump US$1bn into Taiwan Mobile has hit a regulatory hurdle.
The deal could be in violation of Taiwanese law that prohibits state ownership of media bodies.
Under the terms of the deal, Carlyle was to exchange its stake in Taiwanese cable TV firm Kbro for a 15.5% stake in Taiwan Mobile. Taiwan Mobile would then pay US$1bn to Carlyle through a share swap and cash, taking on T$24bn (US$761m) of debt in the process.
However, the government of Taipei has an indirect interest in Taiwan Mobile through a stake in banking group Fubon Financial Holdings. Fubon’s controlling shareholder, the prestigious Tsai family, is Taiwan Mobile’s largest shareholder.
Regulators are yet to approve the deal.
