Sky Starts Process to Take 100 Percent Control of Sky Deutschland
The pan-European pay TV giant will squeeze out the holders of the remaining 4 percent stake in the German unit.
Pan-European pay TV giant Sky said Tuesday that it has notified the management board of Germany's Sky Deutschland that it has started a process to buy out the remaining 4 percent stake in the company held by small shareholders.
Rupert Murdoch's 21st Century Fox owns a 39 percent in Sky, which was created last year when Britain's BSkyB acquired Fox's Sky Italia and majority stake in Sky Deutschland.
The company, led by CEO Jeremy Darroch, said it has initiated "the necessary steps for the transfer of the remaining approximately 4 percent minority shareholdings in Sky Deutschland" in a so-called "squeeze-out" process, in which the shareholders must transfer their holdings to the company.
Via an entity called Sky German Holdings, Sky already controls approximately 96 percent of Sky Deutschland after buying out more shareholders since saying it would hold an 87 percent stake in November. Remaining minority shareholders will receive cash compensation for their stock. The price will be determined following a formal valuation of Sky Deutschland "in accordance with the prescribed requirements" of squeeze-outs, Sky said.
"The applicable price per share will be the higher of the price determined by such valuation and the volume weighted average share price of the shares of Sky Deutschland in the last three months prior to this announcement," it said in a statement. The volume weighted average stock price amounts to $7.62 (€6.68).