21st Century Fox Makes Offer for Sky

LONDON: Sky has received a new bid from 21st Century Fox, with an offer price of £10.75 ($13.50) per share in cash that would make it a £18.5 billion ($23.2 billion) deal.

The independent directors of Sky said certain material offer terms remain under discussion and “there can be no certainty that an offer will be made by 21st Century Fox, nor as to the terms of any such offer.”

The directors have indicated to 21st Century Fox that they are “willing to recommend the proposal to Sky shareholders, subject to reaching agreement on the other terms.”

The independent committee considering the terms of the proposal is comprised of Martin Gilbert, Andrew Sukawaty, Jeremy Darroch, Andrew Griffith, Tracy Clarke, Adine Grate, Matthieu Pigasse and Katrin Wehr-Seiter.

Discussions are continuing, according to Sky, and a further announcement will be made in due course.

“In the past several years, 21st Century Fox has consistently stated that its existing 39.1 percent stake in Sky is not a natural end position,” 21st Century Fox said in a statement. “A proposed transaction between 21st Century Fox and Sky would bring together 21st Century Fox’s global content business with Sky’s world-class direct-to-consumer capabilities, which have made it the number one premium pay-TV provider in all its markets. It would also enhance Sky’s leading position in entertainment and sport, and reinforce the U.K.’s standing as a top global hub for content generation and technological innovation.”