Macquarie Media Group (MMG) has sold its 60% interest in Taiwan Broadband Communications (TBC) to a Macquarie Group managed fund for about $400 million.
MMG said it will not need to refinance any term debt until 2010.
In addition to the agreed amount, MMG will receive $239 million net distribution from a refinancing of TBC in August 2007.
Macquarie Korea Opportunities Fund (MKOF) has purchased the interest from MMG and has already secured all necessary investor approval. MMG is confident the Macquarie Group track record in Taiwan and familiarity with its regulatory framework will ease the sale process.
The Sydney-based media group said the price represents an enterprise value of 12.1 times earnings before interest, depreciation and amortisation (EBITDA).
It said it delivers an internal rate on MMG’s investment of 34% after taking account of distributions received during MMG’s period of ownership.
“On completion, MMG’s investment in TBC will have delivered an attractive return for investors,” chief executive officer Mark Dorney said.
“The sale is consistent with MMG’s commitment to maximising value for investors. The price demonstrates the fact that MMG sought out and acquired TBC at an attractive price and successfully identified operational management initiatives that could be implemented to enhance value. The sale crystallises the uplift in the value of the business,” chief executive officer Mark Dorney said.
Mr Dorney said the relative stability of local markets through the cycle and the continued realisation of synergy benefits from other acquisitions have left MMG well positioned to continue to deliver sustainable, growing year-on-year distributions to investors.
Macquarie Media Group first listed its stapled securities on the Australian Securities Exchange in 2005 at a price of $2.75, and a second instalment of $2 was paid in November 2006.
At the close today, share in MMG were trading 14 cents or 3.7% up at $3.89.
