Australia: Vodafone NZ and Sky Network expected to unveil merger plans

Vodafone NZ is considering a merger with Sky, the pay-TV operator has confirmed after its shares on the New Zealand Stock Exchange were placed in a trading halt on Wednesday.

“Following recent media speculation, Sky confirms that it is in discussions with Vodafone Group Plc regarding a potential transaction involving a combination of the businesses of Sky and Vodafone New Zealand,” Sky said in a statement to the NZX.

“The discussions are ongoing and incomplete and may not result in a transaction occurring.”

In response to a request for comment, Vodafone NZ referred only to Sky’s NZX statement.

Sky and Vodafone NZ already offer bundled deals in partnership, which involve pay TV, broadband, and phone services.

Sky has retained Citibank for advice on options for what analysts have estimated will be NZ$400 million of surplus capital, once Sky’s expenditure program winds down. Sky TV’s market capitalisation is NZ$1.7 billion. Its shares last traded at NZ$4.47, having declined by 28 percent over the past year thanks to increasing competition from video-streaming services Netflix and Lightbox.

Full Content: The Australian

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