Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

UPDATE: Spark, 2Degrees granted stay on merger decision

Wednesday 22 February 2017 04:58 PM

UPDATE: Spark, 2Degrees granted stay on merger decision for Sky, Vodafone

(Clarifies timeframe in fourth paragraph)

By Sophie Boot

Feb. 22 (BusinessDesk) - Spark New Zealand and 2Degrees have been granted a stay on the proposed merger between rival Vodafone New Zealand and pay-TV operator Sky Network Television to consider their legal options.

If the Commerce Commission clears the merger tomorrow, it won't come into effect immediately, giving the opposing parties time to read the reasoning behind the decision and decide whether they will pursue a legal challenge.

"I have concluded it is appropriate in the present case to make an order staying the effect of any clearance decision for a short period in order to enable the applicants to consider their options," High Court Justice Graham Lang said. "The transactions have the potential to directly affect consumers in the markets affected by the commission’s decision. There is, therefore, a significant degree of public interest in the outcome of the clearance decision. As a result, there is also public interest in ensuring that the decision-making process has not miscarried in any material way."

The commission will release its decision tomorrow but not the detailed reasoning behind it, which will follow later. The parties have until midnight on the third day after the regulator delivers its reasoning to file for judicial review. If they do file papers, Sky and Vodafone will be unable to merge until further court orders are made.

Spark, Internet New Zealand, and Trustpower last week asked Sky and Vodafone to voluntarily put off finalising the merger if they got regulatory approval, a request that was rejected.

Sky and Vodafone want to create the country's largest telecommunications and media group, with Sky TV buying Vodafone NZ for $3.44 billion, funded by a payment of $1.25 billion in cash and the issue of new Sky TV shares at a price of $5.40 per share. Vodafone becomes a 51 percent majority shareholder in Sky TV, in what amounts to a reverse takeover. The pay-TV operator will borrow $1.8 billion from Vodafone to fund the purchase, repay existing debt and use for working capital.

(BusinessDesk)

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO: