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Media

21st Century Fox posts formal offer document for Sky takeover bid

The document effectively formalises a proposed bid by the media giant in July although Fox now intends to acquire the FTSE 100-broadcaster by way of a takeover

21st Century Fox Inc (NASDAQ:FOX) has posted an offer document and form of acceptance for its 1,400p offer to buy FTSE 100 pay-TV broadcaster Sky PLC (LON:SKY).

The document effectively formalises a proposed bid by the media giant in July, although Fox now intends to implement its acquisition by way of a takeover offer rather than a scheme of arrangement and will be conditional on 75% or more of Sky’s shareholders accepting the offer.

READ: 21st Century Fox given until Thursday night to increase bid for Sky

The proposal also extends the deadline for a revised offer document to 22 September, relieving some pressure on Fox after the UK’s takeover panel confirmed on Tuesday that the company had until Thursday night to increase its offer if it wanted to outbid rival media conglomerate Comcast Corp (NASDAQ:CMCSA).

Despite the formalisation, the offer still lags behind Comcast’s bid, which currently offers 1,475p per share for the 61% of the broadcaster not currently owned by Fox.

Sky said it had received the offer document and that its independent committee would respond within 14 days.

In mid-morning trading Wednesday, Sky shares were up 0.3% at 1,525p.

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