Korea's IMMPE in $190m cable deal

The Seoul-based firm's third investment in six months is in a cable operator.

Seoul-based IMM Private Equity has invested $190 million for a 21 percent stake in T-Broad Holdings, Korea’s second largest cable operator.

IMM will participate on the board and IPO committee and will have “strong input in business strategy and expansion planning”, according to Hae-Joon Joseph Lee, senior managing director.

T-Broad has 3.5 million subscribers and $750 million in revenue.

IMM believes the cable operator has the potential to grow its subscriber base as Korea’s analog-to-digital conversion continues and as new regulatory changes that ease the limits on the number of subscribers per operator are implemented, Lee said. In addition, a roll-out of value-added services such as home shopping and video-on-demand are planned.

The T-Broad investment is the sixth from IMM’s second fund, RoseGold II, which held a final close on $700 million in December 2012. About 60 percent of the fund is now deployed, Lee said.

In August 2013, IMM acquired a 24 percent stake in POSCO Specialty Steel for KRW 250 billion (€172 million; $234 million), PEI reported earlier. In July, it acquired a majority stake in Holly’s Coffee, a Korean coffee shop franchise, for an investment expected to total $100 million after add-on acquisitions.

Founded in 2006, IMM Private Equity is a Seoul-based private equity firm with $1.5 billion in assets under management.