TVNZ Sells Sky At Discount

TVNZ has sold its shareholding in Sky to existing Sky shareholders for a considerable discount in order to maintain "a positive and co-operative ongoing relationship with Sky".

The offer accepted was for 46 million shares at $2.75. Sky had been trading at around the $3.20 mark and rose to past the $3.25 mark after the announcement was made. TVNZ reaped $126.5 million from the sale and immediately announced a special dividend of $70 million to its shareholder, the Crown.

TVNZ has been removing itself from outside businesses at a rapid rate in recent times and the latest sale follows the sale of the company's interests in CLEAR Communications.

TVNZ Chairman, Rosanne Meo, says the Board felt comfortable in making the dividend to the Government as "the proceeds were in excess of the company's requirements to fund its anticipated investment needs in the emerging digital world."

Ms Meo said while the company received higher offers from institutional investors, the importance of maintaining a good relationship with Sky set a threshold that other straight cash offers could not meet.

TVNZ has indicated it will shortly make a series of announcements about how it intends to implement or deal with emerging broadcasting technologies.

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