Disney Will Be Forced To Acquire All Of Sky If Foxs Takeover Of UK Pay Net Is Not Complete Before Mega-Deal
Lefteris Pitarakis/AP/REX/Shutterstock Disney will be forced to acquire all of Sky if 21st Century ..
Lefteris Pitarakis/AP/REX/Shutterstock
Disney will be forced to acquire all of Sky if 21st Century Foxs takeover of the UK pay-TV broadcaster is not complete prior to the Mouse Houses takeover of the rival Hollywood studio.
The UKs Panel on Takeovers and Mergers made the ruling on Thursday morning and the three companies have accepted it.
Disney will have 28 days from the completion of its $66B acquisition of Fox to make a £10.25 ($US15) offer for all the shares of Sky if Foxs own $15.7B takeover of Sky is not complete by then or if Comcasts rival offer has not been accepted. It also posits that this would not be required if another third party has acquired 50% of Sky by then.
Fox said that it believes its deal for Sky will close by June 30 2018 and is confident that the UKs Competition and Markets Authority will approve the transaction so it will be interesting to see which mega-deal moves first. Fox currently owns 61% of Sky and is in the process of buying the remaining shares.
“Disney will be required to make a mandatory offer to the holders of ordinary shares in Sky pursuant to Note 8 on Rule 9.1 of the Takeover Code as a result of Foxs stake of approximately 39% in Sky. The basis for this ruling is that, in accordance with paragraph (b) of Note 8 on Rule 9.1, the Executive considers that securing control of Sky might reasonably be considered to be a significant purpose of Disneys acquiring control of Fox,” the independent body noted.
Tick, tock.
