Rupert Murdoch’s mass media conglomerate, 21st Century Fox, has announced it has agreed to take full control of British TV giant Sky to the tune of $A19.8 billion.
The offer was announced almost one week after the companies reached a preliminary agreement on a deal where 21st Century Fox would buy the remaining 61 per cent stake in Sky that it didn’t already own, according to Fairfax.
21st Century Fox said in a statement that the deal “creates a global leader in content creation and distribution, enhances our sports and entertainment scale, and gives us unique and leading direct-to-consumer capabilities and technologies”.
Under the terms of the transaction, Fairfax reported that 21st Century Fox will pay roughly $18 a share for the remainder of Sky, with the deal to value the TV company at approximately $31 billion.
The Murdoch-owned media giant said it expects the transaction to close by the end of 2017, and if that is not the case, Sky shareholders would be eligible to receive a special dividend of 10 pence a share, according to Fairfax.
The transaction has been arranged so that it only requires approval from 75 per cent of Sky shareholders who vote on the deal.
Sky deputy chairman Martin Gilbert said that while the company’s independent committee remains confident in Sky’s long-term prospects, it believes 21st Century Fox’s offer will accelerate and de-risk the delivery of future value for all Sky shareholders, Fairfax reported.
“As a result, the independent committee unanimously agreed that we have a proposal that we can put to Sky shareholders and recommend,” he said.