Murdoch's News Ltd to sell Sky TV stake for $815.3M   4 Mar 2013

Article - BusinessDesk

 

Murdoch's News Ltd to sell Sky TV stake for $815.3M in discounted placement

By Paul McBeth

March 4 (BusinessDesk) - Rupert Murdoch's News Ltd is quitting its stake in pay-TV operator Sky Network Television for $815.3 million through an underwritten placement to institutional investors at a 7.2 percent discount.

Sky TV's shares were halted after News said it will sell its 44 percent stake in the New Zealand firm in a placement underwritten and managed by Deutsche Bank and Craigs Investment Partners, according to a statement to the stock exchange. The $4.80 price was later published in a substantial shareholder notice. The shares last traded at $5.17.

"It's a reasonable discount without being overly generous - they don't need to be in a market that has supply issues and a lot of demand," said Grant Williamson, a director at Hamilton Hindin Greene. "It's a very large placement for the market, and we're seeing some selling stocks this morning to raise money for it."

The NZX 50 index fell 1.1 percent to 4272.43 on turnover of $86.1 million.

Murdoch's exit from the pay-TV firm comes four months after New Zealand's billionaire Todd family sold its 11 percent stake for $218 million at $5.05 a share. That was a discount of 5.8 percent at the time. News took the cornerstone stake in Sky TV via a merger with Independent News Ltd in 2005.

"We and Sky have always enjoyed an excellent, arms-length working relationship and we expect this to continue," News Corp president and chief operating officer Chase Carey said. "We do not anticipate any change to current arrangement regarding access to content and collaboration on technology."

The sale comes as Sky TV's local dominance in the pay-TV market comes under increased focus from the antitrust regulator with the Commerce Commission investigating the TV company's content arrangements with internet service providers.

News Ltd regional director Michael Miller will resign from Sky TV's board as a result of the sale.

The halt will be in place for up to two days to shift the stake.

The stock is rated an average 'outperform' based on nine analyst recommendations compiled by Reuters, with a median target price of $5.535.

Last week, the New Zealand pay-TV operator reported a 9 percent lift in first-half profit to $68.2 million, with a total subscriber base at 846,988.

(BusinessDesk)

Add a comment

Bookmark and Share

News

Dynamic New Zealand writers to feature at this year’s Edinburgh International Book Festival

20 Jul 2017 Arts
Dynamic New Zealand writers making waves at home and abroad will present their work and participate in this year’s Edinburgh... more

$9.4m to support students with English as a second language

26 Jun 2017 Education
22 June 2017 Students learning English as a second language will benefit from a further $9.4 million being made available under... more

Business

Rocket launch a huge step for New Zealand’s space industry

25 May 2017 Business News
25 May 2017 Minister for Economic Development Simon Bridges has congratulated the team at Rocket Lab on the successful launch of... more

Increased investor confidence welcomed

29 May 2017 Business News
29 May 2017 Commerce and Consumer Affairs Minister Jacqui Dean today welcomed the Financial Markets Authority annual survey results... more

Living

NZ's Sola Rosa heading "Back to You" in London - interview with Andrew Spraggon

6 Jul 2017 Entertainment By Charlotte Everett
Sola Rosa Soundsystem heads back to London with a show on 27 July – NZNewsUK London Editor Charlotte Everett caught up with... more

Spirit of “Mateship” prominent at London ANZAC commemorations

25 Apr 2017 ANZAC By Charlotte Everett
All photos copyright Peter Livingstone Photography. Lead image: HRH The Duke of York (far right), with the Hon Alexander Downer (far... more

Property

New Zealand Housing Affordability Measure released

10 May 2017 Property
10 May 2017 The Ministry of Business, Innovation and Employment’s (MBIE) new Housing Affordability Measure will allow the market... more

NZ house prices gain 11% in October

14 Nov 2016 Property
Article - BusinessDesk Monday 14 November 2016 10:28 AM NZ house prices gain 11% in October, driven by sales of higher value homes By... more

Migration

Suspension of decision making authority

25 Apr 2017 Migration
24 April 2017Immigration Minister Michael Woodhouse is taking steps to improve Immigration New Zealand’s decision making... more

Recognised Seasonal Employers employ more Kiwis

8 Feb 2017 Migration
7 Feb 2017 Immigration Minister Michael Woodhouse welcomes a report showing the vast majority of employers who take on seasonal... more

Travel

International visitors projected to spend $15 billion

12 May 2017 Travel & Tourism
12 May 2017 New Zealand’s tourism sector is forecast to grow significantly over the next seven years, with international... more

Tourism spending continues rise in 2017

10 May 2017 Travel & Tourism
27 April 2017 Tourism spending by both international and domestic visitors continues to grow strongly in 2017, Acting Tourism Minister... more

Sport

SPECIAL LIMITED OFFER: Barbarians v NZ, Twickenham 4 Nov - £55 tickets, All Blacks Supporters Bay

20 Jul 2017 Rugby
In 2009 the Barbarian team had a phenomenal line up of world class players; Matt Giteau, Victor Matfield, George Smith, Jamie Roberts,... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome more

Kiwi Success

Law Commissioner appointed

29 May 2017 Appointments
29 May 2017 Former Secretary for Justice Belinda Clark has been appointed as Law Commissioner, Justice Minister Amy Adams announced... more

Spencer to be Acting Governor of Reserve Bank

8 Feb 2017 Appointments
7 Feb 2017 Finance Minister Steven Joyce will appoint current Deputy Reserve Bank Governor Grant Spencer as the Acting Governor of... more

Recruitment

Online job ads continue growing strongly

26 Jun 2017 Recruitment
23 June 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith says the latest Jobs Online report shows strong growth... more

New employment resource for young people

1 Mar 2017 Recruitment
28 Feb 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith and Associate Education Minister Louise Upston have... more

s