MUMBAI: If Disney’s proposed acquisition of Fox proceeds, the former has to make a mandatory offer to the holders of ordinary shares in Sky, according to the UK’s takeover code. The UK Takeover Panel has informed Disney, Fox and Sky of its ruling.
Disney, the owner of Walt Disney Studios, has made a $66 billion bid to take over 21st Century Fox, which owns 39 per cent stake in Sky. According to the rules of the Takeover Code, Disney will be required to make the mandatory offer to the holders of ordinary shares in Sky as a result of Fox’s stake of approximately 39 per cent in Sky.
Within 28 days of completion of its acquisition, Disney would have to make a bid of 10.75 pounds a share. Disney can evade the bid in certain circumstances; one if Fox acquires 100 per cent of the ordinary shares of Sky or any other third-party acquires more than 50 per cent of the ordinary shares of Sky. Comcast Corporation already announced earlier it was considering making an offer for Sky.
“At this stage, Sky Shareholders are advised to take no further action. Further advice to Sky shareholders will be announced in due course,” Sky said amid this complexity.
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