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Monday, January 12, 2015

MBK, Macquarie launch plan to sell S.Korean pay-TV firm for up to $2.9 bln-sources, (NYSE: KT)

Asian private equity firm MBK Partners and Australian bank Macquarie Group have launched plans to sell jointly owned South Korean cable TV operator C&M Inc in a deal they hope could be worth up to $2.9 billion, people briefed on the matter said on Monday. Letters have been sent to other Korean cable TV firms encouraging them to bid for the country's fifth-biggest pay-TV operator by subscriber numbers, one person said, declining to be identified as the sale process was private. Buying C&M would secure a No.2 position behind industry leader KT Corp for at least four local competitors in the country's fragmented pay-TV market.MBK and Macquarie first jointly acquired more than a 90 percent stake in C&M in 2008, paying around 2.1 trillion won ($1.94 billion). C&M made 660 billion won in revenue in 2013.The people familiar with the matter said the sellers expect the business to fetch about 8-10 times its earnings before interest, tax, depreciation and amortization (EBITDA), the multiple range for valuations in the cable TV industry globally.C&M's EBITDA in 2013 was 310 billion won, giving a targeted price tag range of 2.48 trillion won to 3.1 trillion won. C&M had 2.4 million subscribers as of September 2014.

KT Corporation is a Korea-based company engaged in the provision of integrated telecommunications services. Shares of KT fell by 0.58% or $-0.08/share to $13.70. In the past year, the shares have traded as low as $13.10 and as high as $17.59. On average, 457632 shares of KT exchange hands on a given day and today's volume is recorded at 352847.