Taiwanese cableco China Network Systems (CNS) has emerged as an acquisition target for device manufacturer Foxconn Technology Group.
CNS’ parent, private equity firm MBK Partners, is in talks with Foxconn and could sell its 60% stake for NT$64bn…
Taiwanese cableco China Network Systems (CNS) has emerged as an acquisition target for device manufacturer Foxconn Technology Group.
CNS’ parent, private equity firm MBK Partners, is in talks with Foxconn and could sell its 60% stake for NT$64bn (US$2.1bn), a source with knowledge of the matter told Reuters.
Foxconn is also reported to have held talks with Taiwan Mobile, the country’s third largest mobile operator, regarding a tie-up. Last October Foxconn spent US$312m in Taiwan’s 4G auction as part of its attempts to diversify its activities and begin providing services.
Foxconn is the main manufacturer of iPads and iPhones, but its revenues from PC and phone manufacturing have been slowing.
MBK is also reported to be considering a listing of CNS. Last summer MBK was said to hire Goldman Sachs and Morgan Stanley for a business trust IPO worth US$1bn, but then rowed back on the idea.
The firm had looked to sell its stake in the triply play provider, which has more than one million subscribers, to food manufacturer Want Want Group for US$2.4bn in 2010. However, local regulators chose to block the deal because Want Want already owned Chung T’ien Television and China Television.
