9th Jun 2016 05:30
NEWBURY (Alliance News) - Sky Network Television Ltd and Vodafone Group PLC announced that they have reached an agreement to create a leading integrated telecommunications and media group in New Zealand, via a combination of Sky Network and Vodafone New Zealand Ltd.
Sky will acquire all of the shares in Vodafone NZ for a total purchase price of NZD3.44 billion, through the issue of new SKY shares giving Vodafone Europe BV a 51% interest in the combined group and cash consideration of NZD1.250 billion, to be funded through new debt.
The new Sky shares will be issued at a price of NZD5.40 per share, representing a 21% premium to Sky's last close of USD4.47 and 27% premium to Sky's 1 month VWAP of USD4.25 on 7 June 2016.
Vodafone NZ is New Zealand's leading mobile and clear number two broadband provider, with over 2.35 million mobile connections and over 500,000 fixed-line connections. Sky is New Zealand's leading pay TV provider with over 830,000 subscribers, servicing New Zealand households with its portfolio of premium content.
For the year ending 30 June 2017, the combined group will have forecast pro-form a revenue of NZD2.91 billion.
Russell Stanners, currently CEO of Vodafone NZ, will be appointed CEO of the combined group, while John Fellet will be appointed CEO of Media and Content, reporting to Russell Stanners.
Stanners and Fellet have already established a strong working relationship over the last decade as they have developed the existing commercial agreement and working relationships that are in place between SKY and Vodafone NZ. It is intended the remainder of the management team will be drawn from the existing teams at SKY and Vodafone NZ.
Copyright RTT News/dpa-AFX
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