A meeting can be called anytime, doesn’t have to be at the ASM?
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Sky TV shares slump after it confirms talks to acquire MediaWorks | Stuff.co.nz
At least they admit to reading Sharetrader!!
If you haven't already done so the Mediaworks financials are interesting reading (Outfits run by PE outfits are always interesting)
Book Value (Equity) is $266m which includes $300m of Intangibles - of which $232m is Goodwill
Note 14 is very interesting - the bit where they say that the Goodwill is actually worth that $232m .... Mediaworks Radio $168m and Outdoor $72m
https://app.companiesoffice.govt.nz/...9962C1A0111E86
So a company in the business of selling largely ad-free content to premium subscribers, buys… an advertising business?
Yes absolutely that is what I mean.
An Exceptional Meeting would be before our AGM in August.
So, if we were to have a special meeting to vote on this deal in July (for example) they would need to get a deal in front of us very soon.
If they present a deal that requires us to pay any more than $50M cash (given we would be inheriting to much debt) I think the deal will get voted down convincingly. Above a $50M offer they are just squandering our cash and most would rather a tax free payment.
Rather give me my money and let me waste it on the 3 P's (piss, pokies and poontang) thanks!
No point defying the overwhelmingly negative sentiment of Sky doing an acquisition rather than paying out the cash or being taken over.
Let those who want out do so and yes, if it gets cheap enough, happy to add on a few more.
I think that those viewing the potential deal as being only negative are ignoring a number of points which MistaTea has summarized rather well about where Sky can go from here.
Yep, as I've said, SKY had only just re-habilitated it's image as a look-ahead, lean, investable company - $40-$50m NP each year, no debt, growth prospects and solid SP base. Now it is back as a stock for chancers trying to earn a quick buck, before everything burns. Depressing beyond words.
Given this deal with Mediaworks that is being worked on (and the clarity it brings in that The Board and Management are more interested in job safety than maximising shareholder returns...)
I bet the majority of shareholders would jump at a $3 offer from Private Equity right now (even though it is clearly low ball)
There is just no trust anymore.
If anything, Sky's actions today will lead to an opportunistic takeover attempt that succeeds (gets enough votes) because nobody has any confidence in The Board/Management being able to do better.
So the very thing they are trying to prevent is probably more likely now.
Shot Pooman!
Point missed by all the negative reaction is that Sky would not have had its investment bankers approach 2 PE players (one being KKR) just last week if the management and directors are NOT actively considering all options. Which is the right and responsible thing to do.