Vodafone disappointed Commerce Commission declined the proposed merger with SKY Play
Media Industry

SKY and Vodafone NZ merger to create a leading integrated telecommunications and media group

SKY and Vodafone NZ merging to create a leading integrated telecommunications and media group in New Zealand. The Combined Group will have the ability to offer New Zealand’s best entertainment content across all platforms and devices in a rapidly evolving media and telecommunications market.

The Combined Group will provide an enhanced customer experience and greater choice of products and services, as well as attractive offers of entertainment content, broadband and mobile to meet the growing consumer demand for packaged services.

Vodafone will become a 51% shareholder in the Combined Group as a result of a consideration comprising an issue of new SKY shares and NZ$1250 million in cash, equivalent to an Enterprise Value (“EV”) of $3,437 million.

New SKY shares will be issued at $5.40 per share, representing a 21% premium to SKY’s last close of $4.47 and 27% premium to SKY’s 1 month VWAP of $4.25 on 7 June 2016.

The Combined Group is expected to deliver cost, capital expenditure and revenue synergies with a net present value (“NPV”) of approximately NZ$850 million, or NZ$1.07 per share.

The transaction is expected to be accretive to Underlying Free Cash Flow 4 per share for SKY shareholders on a pro - forma FY2017E basis (prior to synergies and integration costs), with additional benefits delivered over time as synergies are realised.

The stronger cash flow generation and anticipated synergies are expected to support increased dividends for SKY shareholders.

The directors of SKY unanimously recommend its shareholders to vote in favour of the resolutions to implement the proposed transaction.

Latest News
SAR and Vodafone test ‘Search and Rescue Network’ helicopter innovation Play
13 May 2017
MEDIA RELEASE - Vodafone and Police Search and Rescue (SAR) have successfully tested a unique network prototype that has the potential to save lives by supporting real life search and rescue operations in future.
Vodafone announces Family Violence policy to support team
27 April 2017
MEDIA RELEASE - Vodafone has today announced it is taking steps to support all team members and their families impacted by family violence.
Vodafone’s infinitely more entertaining Samsung Galaxy S8/S8+ offer
20 April 2017
MEDIA RELEASE - Vodafone is offering consumers an infinitely more entertaining opportunity to snap up Samsung’s new Galaxy S8/S8+ flagship phones, combining leading content with its Infinity Display.

Network Status

Mobile ›
Excellent Very Good Good Fair Low No Connection
Landline & Broadband ›
Excellent Very Good Good Fair Low No Connection

Internet Explorer Not Supported

Please note that we do not support Internet Explorer. For optimal browsing we recommend Chrome, Safari, or Firefox.