(Repeats story first sent on Thursday)
* MBK Partners to sell China Network System-
* The sale could fetch about $2 bln-sources
(Adds details, background)
By Michael Flaherty and Denny Thomas
HONG KONG, April 22 MBK Partners,
the South Korea-based private equity fund, has put its China
Network Systems (CNS) cable company up for sale, sources with
direct knowledge of the matter said on Thursday, in a deal that
could fetch around $2 billion.
MBK Partners has hired Morgan Stanley (MS.N) to advise on
the planned exit, the sources told Reuters. MBK, which manages
about $3.7 billion in assets, has 13 companies in its
portfolio. The buyout firm bought the business for $1.5 billion
The sources declined to be identified as the sale process
is not yet public. CNS, MBK and Morgan Stanley were not
available for comments.
The auction is expected to attract top global private
equity firms looking to put down a sizeable equity check for a
cash flow heavy business with 20 percent market share in
"This will be the Oriental Brewery of 2010," said one of
the sources, who is seeking to advise a buyer.
Several private equity funds are exploring exits from their
profitable investments, encouraged by improved market sentiment
and higher valuations in the regional stock markets.
TPG [TPG.UL], for instance, is looking to float its China
Grand Automotive Services Co. in deal worth about $1 billion,
while Bain Capital is in the process of selling its Asia
Pacific operations of Australia-themed restaurant restaurant
chain Outback Steakhouse.
Last month, TPG also sold its 23.9 percent stake in
Singapore Parkway Holdings PARM.SI to Indian hospital chain
Fortis Healthcare (FOHE.BO) for $685 million.