EQT sells Taiwan TV operator

The Stockholm-based firm has sold the cable operator to one of Taiwan’s richest entrepreneurs

EQT has sold Gala TV Corporation, a cable TV operator in Taiwan, to Yung-tsai Investment Company, an investment vehicle jointly owned by Wang Yung-tsai, one of Taiwan’s richest entrepreneurs.

Financial details of the transaction were undisclosed. EQT did not respond to a request for comment at press time.

Gala TV, which jointly owned by Wang Yung-tsai, Wang Weng Tsao and Wong Wen-Yuan, operates four cable TV channels in Taiwan, offering a mixture of in-house produced, commissioned and acquired content. Gala TV was established in 1997 and has since produced and accumulated a library of Chinese-language TV programmes.

EQT bought the company for an undisclosed amount in February 2011 using its EQT Greater China II, a $535 million 2006-vintage. The fund is focused primarily on mid-market buyout and control investments based in or connected with China, Hong Kong and Taiwan.

EQT appointed an board of directors, including media experts, to support the company in developing its content production capability.

“Gala TV has developed its offering and content production during EQT Greater China’s ownership and is today a cable TV channel operator with strong in-house content production capability,” Martin Mok, a partner at EQT and investment advisor to EQT Greater China, said in a statement.

It is unclear how many companies remain in EQT’s Greater China II following this sale. In January, EQT collected €1.1 billion for its Mid Market fund, which will be invested by EQT’s Greater China and Expansion Capital teams following the merger of the two teams.

The Mid Market Fund, which is led by Jan Ståhlberg, a co-founder and deputy managing partner of EQT, will target mid-market buyouts and growth equity investments in Northern Europe, Greater China and Southeast Asia. It will help Asian companies to expand in Europe and vice versa.

The fund has so far invested in five companies: Avenso, a gallery network and online retailer for photographic art in Germany; Swiss smile, a dental practice chain in Switzerland, data communication provider IP-Only in Sweden; BackWerk, a German franchise system in the self-service bakery and quick service food market and China F&B, which operates restaurant chains Dairy Queen and Papa John’s Pizza in China.