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

Inspiring women recognised in 2017 Honours

31 Dec 2016 News
31 December 2016Some of New Zealand’s most inspiring women have been recognised in the 2017 New Year’s Honours list... more

New Zealand educators congratulated on NY Honours

31 Dec 2016 Education
31.12.16Education Minister Hekia Parata and Tertiary Education, Skills and Employment Minister Paul Goldsmith have congratulated the... more

Business

Solid growth for NZ despite fragile world economy

26 Dec 2016 Business News
The New Zealand economy continued to grow solidly in the September quarter, posting a higher than expected 1.1 per cent growth rate... more

WTO decision important for NZ beef and horticulture into Indonesia

23 Dec 2016 Business News
23 December 2016 Trade Minister Todd McClay today welcomed the World Trade Organization's (WTO) decision upholding New Zealand's... more

Living

3rd Position, Louis Vuitton America’s Cup World Series

21 Nov 2016 Lifestyle
Emirates Team New Zealand EMIRATES TEAM NEW ZEALAND CLOSES IN 3rd POSITION THE LOUIS VUITTON AMERICA’S CUP WORLD SERIES more

Arts Foundation Award recipients for 2016

14 Nov 2016 Lifestyle
The Arts Foundation Next generation of internationally acclaimed talent among the Arts Foundation Award recipients for 2016Under ... more

Property

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

RBNZ sees pressures building in Auckland construction sector

11 Nov 2016 Property By Paul McBeth
Article - BusinessDesk Thursday 10 November 2016 04:04 PM RBNZ sees pressures building in Auckland construction sector By Paul ... more

Migration

Good progress on investment attraction strategy

8 Dec 2016 Migration
Economic Development Minister Steven Joyce has welcomed news that New Zealand is attracting a higher level of quality international... more

Changes to Financial Markets Conduct Act impact UK pension transfers

1 Nov 2016 Migration
New Zealand Government Hon Paul GoldsmithMinister of Commerce and Consumer Affairs 1 November 2016 Changes to Financial Markets... more

Travel

Work on $700m Puhoi road underway

8 Dec 2016 Travel & Tourism
Hon. Simon Bridges 8 December, 2016 Prime Minister John Key and Transport Minister Simon Bridges have turned the sod on th... more

Air NZ teams up Ronan Keating, Julian Dennison for Christmas song

2 Dec 2016 Travel & Tourism
Air New Zealand has paired up with singer Ronan Keating and rising Kiwi actor Julian Dennison to rejig a Christmas classic. 'Summer... more

Sport

Broom to the rescue

31 Dec 2016 Cricket
29 Dec, 2016 In ShortA composed maiden ODI century from the recalled Neil Broom and an unrelenting bowling performance on a tough... more

Rugby World Cup 2019 marks 1,000 days to go ahead of big year of milestones

26 Dec 2016 Rugby
World Rugby and the Japan Rugby 2019 organising committee have been looking ahead to an important year of preparation as Rugby World... 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

High Commissioner to India announced

8 Dec 2016 Appointments
Hon. Murray McCully 7 December, 2016 High Commissioner to India announced Foreign Minister Murray McCully today... more

Acting District Court Judge appointed

11 Nov 2016 Appointments
New Zealand Government Hon Christopher FinlaysonAttorney-General 11 November 2016 Acting District Court Judge appointed Wellington... more

Recruitment

NZ Government accepts recommendations on pay equity

8 Dec 2016 Recruitment
Hon. Paula Bennett,  Hon. Michael Woodhouse, Hon. Louise Upston 24 November, 2016 The Government will update the Equa... more

Fisher Funds hunts for new head to replace founder

2 Nov 2016 Recruitment
Article - BusinessDesk Tuesday 01 November 2016 04:42 PM Fisher Funds hunts for new head to replace founder Carmel Fisher By Paul ... more

s