Deal News: Paul, Weiss has assisted The Carlyle Group (Carlyle) in a US$1.8bn deal to create the largest pay-TV operator in Taiwan. Carlyle Asia Partners has exchanged its holdings in kBro, a large cable TV operator, to become the second largest shareholder in Taiwan Mobile Co (TWM).

Jeanette Chan led the corporate team for Paul, Weiss. Chan was assisted by Jeff Samuels and David Mayo on the tax issues arising out of this deal. Lee and Li, the largest law firm in Taiwan and winner of the recently announced Taiwan Deal Firm of the Year award at the ALB Hong Kong Law Awards 2009, also collaborated with Paul, Weiss. LCS & Partners acted for TWM.

TWM is Taiwan’s leading telecommunications operator and following this share swap will become the largest pay-TV operator in Taiwan. “This transaction is one of the largest M&A deals to have occurred in Taiwan… and we are happy to have helped Carlyle in such an important transaction,” Chan said. Carlyle is no stranger to the Taiwanese telecommunications industry and this investment in TWM will enable it to support the convergence of mobile and cable services.

One-and-a-half million pay-TV subscribers in Taiwan are now waiting for the Investment Commission and the Fair Trade Commission to grant their approval of the completion of the share swap. Chan expects that the regulatory authorities will require at least 30 days to grant such approvals.

Paul, Weiss has been working with Carlyle for over 10 years and advised Carlyle on its initial investment in kBro in 2006. Chan and her team will continue to assist Carlyle to bring this transaction to a close once regulatory approvals have been granted.

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