Murdoch's News Ltd to sell Sky TV stake for $815.3M 4 Mar 2013
- NZ dollar pares gains to be little changed Business
- Commission finds 59 'unfair' terms in energy contracts Business
- Mad Butcher owner Veritas in talks with bank Business
- European Commission recognises NZ auditor regulations Business
- EU recognises NZ auditors News
- NZOG to offer 40M share buyback Business
- NZOG to offer 40M share buyback Business
- Maori land programme boosts productivity and profitability Business
- Sharemilkers most likely to face 'undue pressure' from banks Business
- Pyne Gould avoids suspension with results one day late Business
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.
25 Aug 2016 News
New Zealand Government Hon Gerry BrownleeMinister of Defence 25 August 2016 Minister welcomes Baghdad appointment Defence Minister... more
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
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
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
3 Aug 2016 Property
Wednesday 03 August 2016 10:30 AM Auckland house prices are stabilising, may have plateaued, Barfoot says Aug. 3 (BusinessDesk) -... more
2 Aug 2016 Property
Article - BusinessDesk NZ home values rise at fastest quarterly pace in 12 years By Tina Morrison Aug. 2 (BusinessDesk) - New... more
30 Mar 2016 Migration
British High Commissioner Jonathan Sinclair is defending changes to skilled migrant rules for Britain but suggests they won't affect... more
25 Aug 2016 Travel & Tourism
New Zealand Government Hon Wagner using the new eGates at Wellington Airport.... more
10 Aug 2016 Travel & Tourism
Article - BusinessDesk Wednesday 10 August 2016 12:19 PM Aug. 10 (BusinessDesk) - New Zealand accommodation providers had their... more
25 Aug 2016 Motor Sport
25 Aug 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the end game in Spain First published on Werewolf more
11 Aug 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the Impotence of the Reserve Bank First published on Werewolf more
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
12 Aug 2016 Appointments
New Zealand Government Hon Hekia ParataMinister of Education 12 August 2016 Appointments to New Zealand National Commission for... more
3 Aug 2016 Recruitment
New Zealand Government Hon Steven Joyce Minister for Tertiary Education, Skills and Employment 3 August 2016 Jobs growth continues... more
3 Aug 2016 State of the Market Report
Wednesday 03 August 2016 11:57 AM NZ private sector wage inflation misses expectations in June quarter Aug. 3 (BusinessDesk) - New... more