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

Minister welcomes Baghdad appointment

25 Aug 2016 News
New Zealand Government Hon Gerry BrownleeMinister of Defence 25 August 2016 Minister welcomes Baghdad appointment Defence Minister... more

NZ exporters to UK asked about Brexit impact

16 Aug 2016 News
New Zealand Government Hon Todd McClayMinister of Trade 16 August 2016 Media Statement NZ exporters to UK asked about Brexit... more

Business

Auckland Council debt rises 4.1% to $7.6 billion

29 Aug 2016 Business News
Article - BusinessDesk Monday 29 August 2016 03:47 PM Auckland Council debt rises 4.1% to $7.6 billion on infrastructure spending By... more

NZ trade deficit narrows in July from year earlier

24 Aug 2016 Business News
Article - BusinessDesk NZ trade deficit narrows in July from year earlier as imports fall faster than exports By Jonathan ... more

Living

Young New Zealanders Making Films For Good

18 Jul 2016 Lifestyle
The Outlook for Someday Young New Zealanders Making Films For Good What does sustainability mean to you? Since 2007 The Outlook for... more

Review: NZ's Pitch Black - live in London

8 Jul 2016 Entertainment By Charlotte Everett
20 years after their debut at The Gathering, Pitch Black have satiated a packed venue of fans at London’s Oslo, in... more

Property

Auckland house prices are stabilising Barfoot says

3 Aug 2016 Property By Sophie Boot
Wednesday 03 August 2016 10:30 AM Auckland house prices are stabilising, may have plateaued, Barfoot says Aug. 3 (BusinessDesk) -... more

NZ home values rise at fastest quarterly pace in 12 years

2 Aug 2016 Property By Tina Morrison
Article - BusinessDesk NZ home values rise at fastest quarterly pace in 12 years By Tina Morrison Aug. 2 (BusinessDesk) - New... more

Migration

Kiwis could be affected by tighter UK rules

30 Mar 2016 Migration By Audrey Young
British High Commissioner Jonathan Sinclair is defending changes to skilled migrant rules for Britain but suggests they won't affect... more

Immigrants' attitudes to corruption worries SFO

17 Feb 2016 Migration By Sophie Boot
Feb. 17 (BusinessDesk) - New Zealand's record inbound migration has undermined the country's squeaky-clean reputation because of an... more

Travel

Newer, faster and simpler eGates for Wellington

25 Aug 2016 Travel & Tourism
New Zealand Government   Hon Wagner using the new eGates at Wellington Airport.... more

NZ guest nights jump to a record in June amid tourism boom

10 Aug 2016 Travel & Tourism By Tina Morrison
Article - BusinessDesk Wednesday 10 August 2016 12:19 PM Aug. 10 (BusinessDesk) - New Zealand accommodation providers had their... more

Sport

World Rugby appoints RWC 2019 General Manager

25 Aug 2016 Rugby
With just over three years to go before Rugby World Cup 2019 in Japan, World Rugby has appointed Rob Abernethy as RWC 2019 General... more

Columns

Gordon Campbell on the end game in Spain

25 Aug 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the end game in Spain First published on Werewolf more

Gordon Campbell on the Impotence of the Reserve Bank

11 Aug 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the Impotence of the Reserve Bank First published on Werewolf more

Kiwi Success

New appointment to FSANZ Board

29 Aug 2016 Appointments
New Zealand Government Hon Jo Goodhew Minister for Food Safety   29 August 2016 Jane Lancaster has been appointed to the Food ... more

Appointments to New Zealand National Commission for UNESCO

12 Aug 2016 Appointments
New Zealand Government Hon Hekia ParataMinister of Education 12 August 2016 Appointments to New Zealand National Commission for... more

Recruitment

Jobs growth continues to be strong

3 Aug 2016 Recruitment
New Zealand Government Hon Steven Joyce Minister for Tertiary Education, Skills and Employment 3 August 2016 Jobs growth continues... more

NZ private sector wage inflation misses expectations in June

3 Aug 2016 State of the Market Report By Paul McBeth
Wednesday 03 August 2016 11:57 AM NZ private sector wage inflation misses expectations in June quarter Aug. 3 (BusinessDesk) - New... more

s