South Korea' C&M Cable Scooped by MBK Partners and Macquarie Group for $2 Billion

By Mike Caggeso
Associate Editor

Private equity firm MBK Partners and Australia' Macquarie Group have completed a $2 billion joint acquisition of South Korea' second-largest cable television operator, C&M Co. Ltd.

The companies targeted the TV operator position because of South Korea' sturdy and growing economy, which is quickly developing a taste for digital and broadband TV services, Reuters reported.  

Story continues below...

The Korea Broadcasting Commission approved the transaction in late February.

C&M has more than 2 million cable TV subscribers, accounting for more than 40% of South Korea' population, the companies said in a joint statement.

However, the country has about 100 cable operators. And analysts expect regulations for operators' coverage to ease, which would make it easier for investors such as MBK and Macquarie Group to gobble up more of the market, Reuters reported.

At the minimum, Macquarie would be a likely candidate for more South Korea investments. 

Last year, it acquired the country' top cinema chain, Megabox. It also bid for a major stake in broadband operator Hanaro Telecom Inc. (OTC:HANAY), but lost to SK Telecom Co. (SKM).

News and Related Story Links: