SINGAPORE (Feb 11): Gear Rise has entered into a sale and purchase agreement to sell a partial 65% interest in subsidiary Dynami Vision – the sole shareholder of the trustee-manager of Asian Pay Television Trust (APTT) – to Taiwanese firm Da Da Digital Convergence Co.
The value of the proposed transaction was not disclosed.
Da Da Digital is controlled by industry veteran Dai Yung Huei, who is the founder of Taiwan-listed cable television systems and broadband services provider Dafeng TV.
“In view of the industry changes in the 5G era, there is potential to create synergies with APTT,” Dai says. “Clearly, there are opportunities for both parties to collaborate and cover each major metropolitan area in Taiwan.”
“I am confident that together, both parties can achieve much more in terms of enabling wireless operators to tap our integrated networks for data backhaul. More importantly, we are keen to increase our stake in APTT in the mid to long term, while adhering to the necessary regulations in Taiwan and Singapore at the time,” he adds.
According to Brian McKinley, CEO of the trustee-manager, the strategic partnership at the trustee-manager level was one of the various options considered by an independent Strategic Review Committee.
“The Strategic Review Committee has been actively engaging Dynami, amongst other parties, to explore ways that can unlock value for APTT unitholders,” says Lu Fang-Ming, the majority owner of Dynami.
The way Lu sees it, the partial divestment to Da Da Digital is a win-win solution for all parties involved and for APTT unitholders.
“Prior to the proposed transaction, Dynami and Da Da Digital discussed the prospect of Taiwan Broadband Communications Group (TBC) leveraging the strengths and network of Da Da Digital to augment its position in the cable TV and broadband industry,” Lu says. “Dynami recognises APTT’s prized asset, in the form of its nearly 1.2 million subscriber base and a fully owned advanced hybrid fibre coaxial cable network.”
“On the back of Taiwan’s upcoming 5G rollout, we are confident of APTT’s business roadmap and remain invested in APTT and the trustee-manager. We are also optimistic that Da Da Digital’s support will bring promising operational results to the trust,” he adds.
Following the proposed transaction, the trustee-manager says APTT’s distribution guidance of 1.20 cents per unit for 2020 will remain unchanged.
It adds that the proposed transaction will also not have an impact on the management team and operations of the trustee-manager and APTT.
The proposed transaction is subject to, among others, approvals from regulatory bodies in Taiwan and lenders of APTT including of its sole investment, TBC.
As at 9.15am, units in APTT are trading 0.1 cent higher, or up 0.6%, at 16.7 cents.
