UK pay-television broadcaster BSkyB has moved another step closer to sealing the acquisitions of pay-television broadcasters Sky Deutschland and Sky Italia by announcing it has received approval for the deal from German state media authorities.
BSkyB said it has obtained “unconditional media concentration clearance” from the state media authorities in Bavaria, and Hamburg and Schleswig-Holstein, for the acquisition of 57.4 per cent of Sky Deutschland.
The latest news comes after BSkyB’s proposal to acquire Sky Deutschland and Sky Italia was approved last week by its shareholders.
In July, BSkyB announced a deal 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.
Prior to last week’s general meeting, BSkyB said it had already received the approval of the European Commission, as well as the Jersey Competition Regulatory Authority and national media authorities in Austria and Italy.
It added that completion of the transaction remained subject to the satisfaction of certain other conditions, including approval of the German state media authorities.
In its latest statement, BSkyB said: “Sky continues to progress the public offer to all Sky Deutschland shareholders in accordance with the offer document. Further updates will be provided in due course.”
The management and board of Sky Deutschland last month recommended that its shareholders should reject BSkyB’s takeover offer. BSkyB has offered €3.7bn ($4.9bn) for the 57.4-per-cent stake held by 21st Century Fox and €6.75 per share for the outstanding share capital in the broadcaster.
However, the German broadcaster’s management and board said that they believed “the proposed return to the holders of Sky Deutschland shares in the terms of the offer is inadequate from a financial point of view for the concerned holders”.
The total consideration for the acquisition of Sky Italia is £2.45bn (€3.07bn/$4.19bn) with approximately £2.07bn to be paid in cash and the balance to be satisfied through the transfer of BSkyB’s 21 per cent stake in National Geographic Channel International to 21st Century Fox at a value of £382m.