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UPDATE 2-Hollywood producer Dan Mintz agrees to buy Carlyle stake in Taiwan broadcaster

Published 23/11/2015, 04:30 pm
© Reuters.  UPDATE 2-Hollywood producer Dan Mintz agrees to buy Carlyle stake in Taiwan broadcaster
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* Deal valued at US$600 mln - LA Times

* Carlyle has tried to exit investment since 2013

* Taiwan govt says to "strictly" review deal

* Shares of EBC, DMG Entertainment both jump 10 pct (Adds comment on Taiwan regulatory review)

By Faith Hung

TAIPEI, Nov 23 (Reuters) - U.S. film maker Dan Mintz has agreed to buy Carlyle Group 's CG.O 61 percent stake in Taiwan's Eastern Broadcasting Corp (EBC) for an undisclosed sum, allowing the private equity firm to sell an investment it first tried to dispose of in 2013.

In a statement issued late on Sunday, Mintz, a co-executive producer of Hollywood action movie 'Iron Man 3' among others, said he was in the process of buying the stake without disclosing the deal's value nor the source of funding. The deal is subject to regulatory approval, Mintz said.

The statement came after the Los Angeles Times reported Mintz told the paper he had agreed to pay $600 million in the deal, seeking to tap into EBC's potential China growth as a broadcaster of content in Mandarin.

Mintz is founder and chief executive officer of DMG Entertainment, as well as a co-founder of Shenzhen-listed DMG Entertainment and Media Co 002143.SZ .

Taiwan's Investment Commission, which regulates foreign investments, said in a statement that Peter Xiao, another co-founder of the Shenzhen-listed firm, has links with the Chinese People's Liberation Army. The Commission said DMG Entertainment's connection with mainland China means the deal faces a "strict review" by the Taiwan government.

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Carlyle officials weren't immediately available for comment.

The deal comes after Carlyle launched its latest bid to exit the holding last August jointly with EBC's second-biggest shareholder, Eastern Media International 2614.TW , for at least T$20 billion ($650 million). Carlyle's previous attempt to fetch as much as $700 million for the stake found no takers, people with knowledge of the matter said.

By 0430 GMT, shares of Eastern Media, which owns 21.3 percent stake of EBC, were up 10 percent in Taipei, while shares in DMG Entertainment and Media also climbed 10 percent in Shenzhen.

"As a media network EBC offers tremendous growth opportunities in digital, Mandarin-language content, premium content creation and distribution, which will become the anchor platform for ongoing global expansion of Mintz's businesses," the film producer said in his statement.

(Editing by Stephen Coates and Kenneth Maxwell)

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