Date set for vote on Voda-SKY merger

Date set for vote on Voda-SKY merger

SKY TV shareholders will vote on July 6 whether to accept the proposed merger with telecoms giant Vodafone.

A 144 page memorandum of understanding outlining the deal was released to the New Zealand stock exchange this morning.

SKY TV is proposing to buy Vodafone NZ from its British owner for $3.44 billion. SKY would issue 2.19 billion shares to Vodafone UK and borrow to fund the rest of the $1.25 billion needed.

If it goes ahead Vodafone UK will own a majority 51 percent stake in the newly merged company that would still be listed on the stock market.

The board of SKY TV has unanimously recommended the merger which would see new shares issued to Vodafone valued at $5.40. Shares were trading on Tuesday morning at $4.98.

A merged company would combine SKY TV's 830,000 pay television subscribers with Vodafone's 2.35 million mobile connections and 510,000 fixed line connections.

The deal has to be approved by 75 percent of SKY's shareholders and regulatory authorities like the Commerce Commission.