MBK closing in on deals in Taiwan and China

MBK Partners, a North Asia-focused private equity firm formed by former Carlyle executives, is near to closing deals in both Taiwan and mainland China.

MBK Partners, a North Asia-focused private equity firm, is reportedly seeking a stake of up to 40 percent in a Chinese heavy machinery manufacturer for $100 million (€79m), and close to acquiring China Network, a Taiwanese cable television operator, for $1.66 billion (€1.3bn).

MBK is seeking a 30 to 40 percent stake in DHI-DCW Group, a heavy equipment maker owned by the city of Dalian, for $100 million, according to the South China Morning Post, a Hong Kong daily newspaper.

It cited unnamed sources saying MBK has signed a memorandum of understanding with a local government in China. CCMP Capital, a JP Morgan private equity spin-out, and Morgan Stanley were named as the other bidders of DHI-DCW.

DHI-DCW was planning to raise up to $90 million via a public listing in Hong Kong, Xia Deren, the mayor of Dalian was quoted as saying in June on The Standard, another Hong Kong daily.

Xia said that foreign investors will be brought in over the second half of the year, and DHI-DCW will pick investment banks to handle the IPO by year end to sell “up to a 50 percent stake to overseas investors.”

In Taiwan, MBK Partners has beaten Newbridge Capital in the final bidding stage to secure a controlling stake in China Network Systems for up to $1.66 billion, according to Economic Daily, a local daily newspaper. Kohlberg Kravis Roberts, Goldman Sachs, CVC Asia Pacific and Macquarie Bank were among the six in the first group of bidders selected to compete for the cable operator.

China Network and MBK will sign a draft agreement and negotiate details of the share sale in three to six months, the local report said.