By Dipo Olowookere
Leading American company, 21st Century Fox, has confirmed reaching an agreement in principle with Sky Plc in relation to a possible offer to acquire all of the outstanding shares in the company. It however said certain material offer terms remain under discussion and the Possible Offer may or may not lead to an offer being made by 21st Century Fox.
The Independent Directors of Sky have indicated to 21st Century Fox that they are willing to recommend the Possible Offer, subject to reaching agreement on the other terms and conditions of any offer.
In the past several years, 21st Century Fox has consistently stated that its existing 39.1% stake in Sky is not a natural end position.
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.
There can be no certainty that any offer or transaction will proceed.
In accordance with Rule 2.6(a) of the Code, 21st Century Fox is required, by not later than 5.00 p.m. on January 06, 2017, to either announce a firm intention to make an offer for Sky in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.
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