Tbroad Co., the second largest cable TV service provider of South Korea, will likely push back its planned initial public offering (IPO) to next year as the local cable TV industry is losing its charm among investors.

According to cable TV industry sources on Sunday, Tbroad’s parent company Taekwang Group reportedly concluded it would be difficult to list its cable TV operating unit on the Korean bourse by the end of this year.

The decision comes after the cable TV operator has kept losing its corporate value in the absence of signs of recovery in the country’s saturated cable TV market. Tbroad’s corporate value was estimated at more than 1.4 trillion won ($1.2 billion) as of the end of last year, but it is currently estimated below 1 trillion won. Enthusiasm over its IPO has also dropped after the country’s largest mobile carrier SK Telecom Co.’s attempt to buy the nation’s leading cable TV content provider CJ HelloVision Co. fell through earlier this year, putting the local cable TV industry in further disarray.

Tbroad that once was the cash cow of its parent Taekwang Group now has become a headache for the conglomerate as the cable TV operator’s operating profit in the first half of this year plunged 32 percent on year to 366.5 billion won.

There are said to be internal discussions that it would be better to sell off Tbroad and invest in new business instead, but its sale would not come easy because of the comprehensive broadcasting law pending for approval at the National Assembly. The comprehensive broadcasting act restricts Internet Protocol Television (IPTV) service operators such as country’s major players SK Telecom and LG Uplus Corp. to acquire up to only 33 percent stake in cable TV business.

On top of the legal obstacle, D`Live Co., the country’s third largest cable TV service provider is also rushing its moves to sell off its business. If Tbroad puts itself up for sale, all of the county’s top three cable TV service providers would be up for grab simultaneously, bringing down their corporate value to scraps, market experts warned.

By Yoon Jin-ho

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]