Sky Network Ltd and Vodafone Group Plc have announced a deal under which Sky and Vodafone's New Zealand unit would merge.
Under terms of the deal Sky would acquire all of the shares in Vodafone NZ for a total purchase price of NZ$3.437 billion through the issue of new Sky shares, giving Vodafone Europe B.V. a 51 percent interest in the combined group and cash consideration of NZ$1.25 billion, to be funded through new debt.
The new Sky shares will be issued at NZ$5.40 per share, representing a 21 percent premium to Sky's last close.
Vodafone NZ has over 2.35 million mobile connections and over 500,000 fixed-line connections in New Zealand. SKY is New Zealand's leading pay TV provider with over 830,000 subscribers.
The deal must be approved by Sky shareholders. A meeting is expected to take place in early July.
Source : reuters.com