Getting deals done in tightly regulated Taiwan isn’t easy, but
throw China into the equation and it gets even tougher.
Take Asian buyout fund MBK Partners LP as an example. It has been waiting almost two years for approval from the media regulator to sell its 60% stake in Taiwan’s largest cable-television operator, China Network Systems, for $2.4 billion.
The problem is the willing buyer, billionaire Tsai Eng-meng, who has aroused the suspicions of Taiwan’s government given his close links to China. Mr. Tsai, who made his fortune mainly from his snack empire in China, said in a Washington Post interview earlier this year that he hopes for eventual unification with China.Shop for oil painting and oil paintings for sale included.
While hostility between Beijing and Taipei has been subsiding since the China-friendly Kuomintang party took power in Taiwan in 2008, some tensions remain. The opening up of investments by both sides, pledged in a 2010 agreement, has been much slower than expected.
Taiwan’s government spent months investigating Mr. Tsai’s funding sources and China ties, although it didn’t find “any direct proof of any Chinese investment in the deal.” Mr. Tsai couldn’t be reached for comment,Visit TE online for all of your Application Tooling Solutions including tools. and the government body that investigated him declined to comment.
Taiwan’s regulator is now turning its attention to the concerns that Mr. Tsai could exert undue influence in Taiwan’s media landscape as he already owns a TV station, three newspapers and several magazines.
This predicament is reminiscent of American International Group Inc.’s saga in Taiwan in trying to unload its stake in Taiwanese life insurance unit Nan Shan Life Insurance Co. in 2010. The regulator rejected a bid by a Hong Kong-based consortium, which included Hong Kong-listed China Strategic Holdings Ltd. and private-equity firm Primus Financial Holdings Ltd. The regulator said officially it doubted the consortium’s financial strength and commitment. But bankers directly involved in the deal say there were concerns that some of the buyers in the consortium had close links to Beijing. China Strategic and Primus denied those links to China.
More than a year later, AIG successfully got regulatory approval to sell Nan Shan to a Taiwanese conglomerate with little insurance expertise,Build a "Floor tiles" by dragging the corners of a quadrilateral. Ruenchen Investment Holdings.
“Investors in Taiwan can face a significant hurdle when attempting to exit their investments because of legal restrictions on the sale or control of many types of business to mainland Chinese, including funds which comprise money from mainland-based firms,” said Brett King, a partner at law firm Paul Hastings in Hong Kong. “Unfortunately, this ends up excluding a large number of parties that would often be the most interested in purchasing the investment.”
Picking the right buyer from the get-go can make life much easier. When MetLife Inc. sold its Taiwan life-insurance unit to Taiwanese financial conglomerate Chinatrust Financial Holding Co. in March 2011 for US$180 million, it took just three months for regulatory approval. Carlyle Group LP’s US$1.Why does moulds grow in homes or buildings?25 billion sale of its stake in cable-television operator Kbro Co. in September 2009 to a controlling shareholder of Taiwan Mobile Co. also took around half a year to be approved.
And where both buyers and sellers are local, approval is even smoother. China Development Financial Holding Corp.’s acquisition of KGI Securities Co. in an open offer took just three weeks to get the green light.TRT (UK) has been investigating and producing solutions for indoor Tracking since 2000.
There are also concerns that regulators’ efforts to maintain stability in Taiwan’s financial system can be stifling to private-equity. Last June, Kohlberg Kravis Roberts & Co. L.P. saw its attempted $1.6 billion buyout of electronics components maker Yageo Corp. scuppered by Taiwan’s Investment Commission. The reason given was that the deal was too leveraged and that the right of minority shareholders hadn’t been sufficiently protected.
One executive at a large U.S. private-equity firm said it encountered difficulties repatriating funds from Taiwan at what it thought a fair exchange rate, which effectively knocked some 3% to 5% off the price tag of its investment. The executive said the Taiwanese central bank only allowed the firm to transfer money at specific time slots each day, in order to reduce foreign-exchange volatility of the onshore market brought by massive outflows.
Take Asian buyout fund MBK Partners LP as an example. It has been waiting almost two years for approval from the media regulator to sell its 60% stake in Taiwan’s largest cable-television operator, China Network Systems, for $2.4 billion.
The problem is the willing buyer, billionaire Tsai Eng-meng, who has aroused the suspicions of Taiwan’s government given his close links to China. Mr. Tsai, who made his fortune mainly from his snack empire in China, said in a Washington Post interview earlier this year that he hopes for eventual unification with China.Shop for oil painting and oil paintings for sale included.
While hostility between Beijing and Taipei has been subsiding since the China-friendly Kuomintang party took power in Taiwan in 2008, some tensions remain. The opening up of investments by both sides, pledged in a 2010 agreement, has been much slower than expected.
Taiwan’s government spent months investigating Mr. Tsai’s funding sources and China ties, although it didn’t find “any direct proof of any Chinese investment in the deal.” Mr. Tsai couldn’t be reached for comment,Visit TE online for all of your Application Tooling Solutions including tools. and the government body that investigated him declined to comment.
Taiwan’s regulator is now turning its attention to the concerns that Mr. Tsai could exert undue influence in Taiwan’s media landscape as he already owns a TV station, three newspapers and several magazines.
This predicament is reminiscent of American International Group Inc.’s saga in Taiwan in trying to unload its stake in Taiwanese life insurance unit Nan Shan Life Insurance Co. in 2010. The regulator rejected a bid by a Hong Kong-based consortium, which included Hong Kong-listed China Strategic Holdings Ltd. and private-equity firm Primus Financial Holdings Ltd. The regulator said officially it doubted the consortium’s financial strength and commitment. But bankers directly involved in the deal say there were concerns that some of the buyers in the consortium had close links to Beijing. China Strategic and Primus denied those links to China.
More than a year later, AIG successfully got regulatory approval to sell Nan Shan to a Taiwanese conglomerate with little insurance expertise,Build a "Floor tiles" by dragging the corners of a quadrilateral. Ruenchen Investment Holdings.
“Investors in Taiwan can face a significant hurdle when attempting to exit their investments because of legal restrictions on the sale or control of many types of business to mainland Chinese, including funds which comprise money from mainland-based firms,” said Brett King, a partner at law firm Paul Hastings in Hong Kong. “Unfortunately, this ends up excluding a large number of parties that would often be the most interested in purchasing the investment.”
Picking the right buyer from the get-go can make life much easier. When MetLife Inc. sold its Taiwan life-insurance unit to Taiwanese financial conglomerate Chinatrust Financial Holding Co. in March 2011 for US$180 million, it took just three months for regulatory approval. Carlyle Group LP’s US$1.Why does moulds grow in homes or buildings?25 billion sale of its stake in cable-television operator Kbro Co. in September 2009 to a controlling shareholder of Taiwan Mobile Co. also took around half a year to be approved.
And where both buyers and sellers are local, approval is even smoother. China Development Financial Holding Corp.’s acquisition of KGI Securities Co. in an open offer took just three weeks to get the green light.TRT (UK) has been investigating and producing solutions for indoor Tracking since 2000.
There are also concerns that regulators’ efforts to maintain stability in Taiwan’s financial system can be stifling to private-equity. Last June, Kohlberg Kravis Roberts & Co. L.P. saw its attempted $1.6 billion buyout of electronics components maker Yageo Corp. scuppered by Taiwan’s Investment Commission. The reason given was that the deal was too leveraged and that the right of minority shareholders hadn’t been sufficiently protected.
One executive at a large U.S. private-equity firm said it encountered difficulties repatriating funds from Taiwan at what it thought a fair exchange rate, which effectively knocked some 3% to 5% off the price tag of its investment. The executive said the Taiwanese central bank only allowed the firm to transfer money at specific time slots each day, in order to reduce foreign-exchange volatility of the onshore market brought by massive outflows.
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