Macquarie, MBK Partners seal $2 billion South Korea deal

SEOUL (Reuters) - An investment fund managed by Australia's Macquarie Group (MQG.AX: Quote, Profile, Research) and private equity house MBK Partners have completed a $2 billion joint acquisition of South Korea's No. 2 cable TV operator C&M Co Ltd, both companies said.

The deal made the unlisted company the first Korean cable TV operator owned by private equity funds, which have been attracted by the sector's strong growth prospects, steady cashflow and local market monopolies.

The country's adoption of digital and broadband TV services raise hopes for further revenue growth.

A consortium led by MBK Partners and Macquarie Korea Opportunities Fund (MKOF) sealed the transaction for a 92.5 percent stake in C&M for a total of 2 trillion won ($2 billion), according to a joint statement issued late on Thursday.

The consortium, Kookmin Cable Investment Inc, had initially

bought 27.5 percent of C&M from Goldman Sachs (GS.N: Quote, Profile, Research) for 563 billion won last year and latern on secured another 65 percent from C&M Chairman Lee Min-joo and other major stakeholders.

Top South Korean fund manager Mirae Asset Management and Taihan Electric Wire (001440.KS: Quote, Profile, Research) were among the investors for the purchase, but no breakdown of their ownership was provided.

The deal had been in the spotlight due to a debate over who would be the top managing entity of the cable TV multi-systems operator, in a country with restrictions on foreign investment in domestic broadcast companies.

The deal closure comes after the transaction received approval from the Korea Broadcasting Commission in late February.