21st Century Fox boosts offer for Sky to GBP 14 or $32.5B
21st Century Fox (FOXA) and the Independent Committee of Sky PLC (SKYAY) announced that they have reached agreement on an increased recommended pre-conditional cash offer for the fully diluted share capital of Sky which Fox and its affiliates do not already own at a price of GBP 14.00 for each Sky share. The price of GBP 14.00 per Sky share represents an increase of approximately 12% to the Comcast (CMCSA) offer price of GBP 12.50 per Sky share announced on April 25, Fox says in a statement. Under the terms of the increased offer, Sky shareholders will be entitled to receive for each Sky share GBP 14.00 in cash. The increased price includes an amount in lieu of a final dividend in respect of the financial year ended June 30, 2018. It is intended that the acquisition will be implemented by means of a scheme of arrangement under applicable U.K. law. The Sky Independent Committee announced that it intends to unanimously recommend that the Sky shareholders unaffiliated with 21st Century Fox vote in favor of the scheme and take no action in relation to the Comcast offer. Fox currently anticipates that the acquisition will complete in Q3 of 2018. Fox added that the Sky acquisition is not a condition to completion of the Disney (DIS) transaction. Completion of the Sky acquisition will not affect the amount or form of consideration that stockholders of 21st Century Fox receive in the Disney deal, it said. "We strongly believe that a combined 21CF and Sky will be a powerful driver for the continued growth and vibrancy of the UK and broader global creative industries. The enhanced scale and capabilities of the combination will enrich Sky's ability to continue on its mission for years to come, especially at a time of dynamic change in our industry. This transformative transaction will position Sky so that it can continue to compete within an environment that now includes some of the largest companies in the world, but none of whom have demonstrated the same local depth of investment and commitment to the UK and to Europe," added Fox.