Sky Stock Climbs After Comcast Outbids Fox With $40 Bln Cash Offer

(RTTNews) - Shares of Sky Plc (BSY.L, SKY.L) were gaining around 9 percent in the early morning trading in London after the media giant urged its shareholders to immediately accept a superior cash offer of 17.28 pounds by Comcast Corp. (CMCSK, CMCSA). The consideration under Comcast's second increased offer implies a value of approximately 30.6 billion pounds or $40 billion for Sky.

In an auction process set by the UK's Takeover Panel, Comcast offered the highest price, topping 21st Century Fox's (FOX, FOXA) bid at 15.67 pounds per share.

The Comcast offer price represents a premium of 125% to the closing price of 7.69 pounds on December 6, 2016, the last business day before 21st Century Fox's initial approach.

Sky's Independent Committee considers the terms of the superior offer to be fair and reasonable, and said it was an "excellent outcome" and represents "materially superior value". The offer, which opened on July 13, remains open for acceptances by Sky shareholders until 1:00 p.m. (London time) on October 11.

Comcast said it has received all required regulatory approvals to complete the acquisition.

The British broadcaster has been in a competitive takeover situation following the possible offer statement from Comcast in February 2018. Sky said its Shareholders have benefited from seven months of competitive tension which has ultimately led to an auction process.

The Sky Independent Committee noted that both the cash offers from Comcast and 21st Century Fox of 17.28 pounds and 15.67 pounds per Sky Share are now incapable of being increased.

Brian Roberts, Chairman and Chief Executive Officer of Comcast said, "This is a great day for Comcast....… We now encourage Sky shareholders to accept our offer, which we look forward to completing before the end of October 2018."

Meanwhile, Fox said it is considering its options regarding its own 39 percent shareholding in Sky and will make a further announcement in due course.

"Sky is a remarkable story and we are proud to have played such a significant role in building the incredible value reflected today in Comcast's offer," Fox said.

In London, Sky shares were trading at 1,724.50 pence, up 8.80 percent.