News Corp to divest stake in Sky New Zealand

MUMBAI: Rupert Murdoch-promoted News Corp has decided to exit Sky Network Television, New Zealand?s pre-eminent pay television broadcasting service, by divesting its 44 per cent stake in the company.

The global media conglomerate is the largest shareholder in Sky New Zealand through its subsidiary News Limited.

The company has appointed Deutsche Bank to underwrite and, together with Craigs Investment Partners, to manage the sales of its Sky shares. The shares are expected to be sold to a broad range of institutional and retail investors.

Following the sales, News Limited will no longer have any holding in Sky Network Television. As a result of the sale, Michael Miller, Regional Director of News Limited, will resign from the board of Sky.

News Corp President and COO Chase Carey said, "Sky is a world class subscription television business and has been an outstanding investment for News Corporation. We and Sky have always enjoyed an excellent, arms-length working relationship and we expect this to continue unaffected by the sale. In particular, we do not anticipate any change to current arrangements regarding access to content and collaboration on technology."

According to The Australian newspaper, News Limited shares were being offered at NZ$ 4.80 each, giving the stake a value of NZ$ 815 million ($671 million).