Sky directors have agreed in principal to a preliminary takeover offer from Rupert Murdoch’s 21st Century Fox, the British broadcaster announced on Friday.
In a post on its corporate website, the firm revealed an agreement on an offer price valuing the company at £10.75 per share, which puts the asking price at around £18.5 billion in total.
The announcement to the stock market says the terms of the pending agreement would be put before Sky’s shareholders, although Sky said there was no certainty a formal offer would be forthcoming.
“The Independent Directors of Sky plc (“Sky”) note today’s share price increase, and announce that Sky has received an approach from 21st Century Fox, Inc. (“21st Century Fox”). After a period of negotiation, the Independent Directors of Sky and 21st Century Fox have reached agreement on an offer price of £10.75 per share in cash.”
The post continues: “The Independent Directors, who have received financial advice from Morgan Stanley, PJT Partners and Barclays, 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.”
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Sky says discussions are continuing with a further announcement coming in due course.
The offer comes four years. after a takeover was abandoned during the phone-hacking scandal facing Murdoch’s British newspapers.
Fox’s offer represents is a 40% premium on Sky’s closing share price on December 6, although the stocks jumped 30% to £10.26 on Friday.
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Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
