LONDON Wed Oct 15, 2014 2:47pm EDT
http://www.youtube.com/watch?v=YzDqLO-Ch0w
DIFFICULT SALE? Ting Hsin's predicament could revive hopes for other potential buyers of CNS that have previously tabled bids. MBK has been trying to sell CNS for four years.
A consortium comprising Far EasTone Telecommunications Co Ltd (FET) and Morgan Stanley Private Equity Asia (MSPEA) offered to buy MBK's stake in CNS at an Ebitda multiple of around 9.5 times.
In July, FET and MSPEA were seeking a seven-year loan of up to T$48 billion to fund their bid, which was led by Bank of Taiwan, BNP Paribas, Credit Agricole CIB, CTBC, DBS Bank, Land Bank of Taiwan, Taishin International Bank and Taiwan Cooperative Bank.
FET is still talking to MBK about its bid, one source said.
Foxconn Technology Group, Apple Inc's main contract manufacturer, was also in talks with MBK to buy CNS, Reuters reported on April 7. Foxconn could pay about T$64 billion for MBK's 60 percent stake in CNS, according to a report in Taiwan's Economic Daily.
MBK has been trying to exit its investment in CNS since 2010 after buying a 60 percent stake in the company in July 2006.
MBK tried to sell CNS to Taiwanese conglomerate Want Want China Holdings Ltd in October 2010 for more than T$76.2 billion but the sale failed due to antitrust issues.
A T$47.58 billion loan backing Want Want's proposed buyout drew commitments from 21 banks, but the financing was not drawn down because of a lack of clarity from regulators on the acquisition.
MBK refinanced CNS' debt with a T$40.2 billion loan in September 2012. It then hired Citigroup, DBS, Goldman Sachs, Morgan Stanley and Standard Chartered in mid 2013 to manage an IPO of CNS as a business trust, which was targeted for late 2013 but did not take place.
CNS completed a T$39.25 billion, seven-year loan in October 2013 that refinanced the September 2012 loan. Seven banks joined that deal as mandated lead arrangers and bookrunners.
(Editing by Tessa Walsh and Prakash Chakravarti)
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