Written by Staff Writer
10 Dec, 2016 | 4:15 pm
US media giant 21st Century Fox has made a takeover approach for Sky that values the UK-based satellite broadcaster at £18.5bn.
The proposed offer is worth £10.75 a share in cash, a premium of 36% to the closing price on 8 December.
Sky shares ended 26.6% higher at 999.8p in London following the announcement.
Media tycoon Rupert Murdoch controls 21st Century Fox, which already owns a 39.1% stake in Sky.
Sky said that the independent directors of both companies had “reached agreement on an offer price” of £10.75 a share, but added that “certain material offer terms remain under discussion”.
Fox said Sky’s directors had indicated that they were willing to recommend the proposed offer.
According to Reuters’ calculations, Fox would pay £11.25bn for the stake in Sky that it did not already own.
Sterling’s 16% fall against the US dollar in the wake of the Brexit vote has made UK companies more attractive targets for foreign companies.
Fox is required to “clarify its intentions” by 6 January, or walk away for at least six months under UK takeover rules.
Alex DeGroote, analyst at Peel Hunt, said it was “not quite a done deal”, but he would be surprised if it did not go ahead.
“Sky has not performed well in the UK stock market this year, and is seen as a Brexit loser. Fox is of course also a dollar bidder, and the collapse in sterling makes Sky a less expensive purchase than pre-Brexit,” he said.
“There will also be cost synergies, which will reflect economies of scale in technology and content, such as sports and movie rights.”
Source : BBC
13 May, 2021 | 05:24 PM
13 Feb, 2021 | 08:50 AM
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