London-based investment firm Odey Asset Management has rejected UK pay-television broadcaster BSkyB’s offer to buy out its eight per cent stake in German pay-television broadcaster Sky Deutschland, saying it undervalues the business.
Odey is the second largest shareholder in Sky Deutschland, but has said BSkyB’s offer values its stake at a “nil premium”.
“Odey Asset Management LLP continues to believe that the current proposal, effectively a nil premium takeover offer to the minority shareholders of Sky Deutschland AG, significantly understates the value of the company,” the company said. “Consequently, Odey Asset Management LLP does not intend to tender its shares in this proposed offer.”
BSkyB on Friday confirmed deals to acquire media company 21st Century Fox’s 100 per cent stake in Sky Italia and 57.4 per cent interest in Sky Deutschland, bringing together the leading pay-television businesses in three of Europe’s four biggest markets.
The acquisition of Fox’s shareholding in Sky Deutschland is for a consideration of £2.9bn (€3.6bn/$4.96bn) in cash, valuing Sky Deutschland at €6.75 ($9.2) per share. BSkyB launched a voluntary cash offer to Sky Deutschland’s minority shareholders at €6.75 per share – an offer that Odey has rejected.
However, BSkyB has maintained that a majority stake in Sky Deutschland will still allow it to control decision making through being able to choose those who sit on its supervisory board.