US cable operator Comcast has won the bidding to acquire European pay-TV provider Sky in the auction with rival 21st Century Fox held by the UK Takeover Panel. After raising its price in July to GBP 14.75 per share or a total of GBP 26 billion, the winning bid reached GBP 17.28 per share, equal to over GBP 30.6 billion in total. Fox earlier bid GBP 14 per share, or a total of GBP 24.5 billion for the company.
After neither company was able to complete their takeover offers, the UK Takeover Panel declared earlier this month that the two would have to compete for Sky in a one-day auction of up to three rounds on 22 September. Comcast won the bidding in the third round.
Sky said its committee of independent directors, supported by financial advisers Morgan Stanley, PJT Partners and Barclays, declared Comcast's offer superior and will recommend it to shareholders. The price represents a premium of 125 percent on Sky's closing share price of GBP 7.69 on 6 December 2016, the last business day before 21CF first expressed interest in making a buy-out offer. The offer is also worth 15.5 times Sky's adjusted EBITDA for the twelve months to June 2018.Comcast said it will start already with buying Sky shares in the open market and shortly a new offer document with the same terms as its initial offer. The Takeover Panel set a deadline of 11 October for the offer to be declared unconditional. Comcast said it aims to de-list Sky, assuming it acquires at least 75 percent of the company's shares.
