April 12, 2018
The Panel on Takeovers and Mergers, a U.K. regulatory board, April 12 ruled the Walt Disney Co. be forced to match Fox’s $14.4 billion cash offer for British pay-TV service Sky should its $52.4 billion acquisition of select 21st Century Fox assets succeed. Fox currently owns 39% of the satellite TV operator.
The panel mandated Disney pay 10.75 pounds ($15.22) per Sky share, which is equal to Fox’s bid in 2016 for outstanding Sky shares currently held up in regulatory limbo.
Disney, which initially said it wasn’t interested in acquiring the remaining stake in Sky, has agreed to the ruling, according to The Takeover Panel.
While the ruling affords Sky investors a guaranteed Sky buyer should Fox’s bid fail, the markets remain key on Comcast’s Feb. 27 stated desire to bid more than $31 billion for Sky – which represents a 16% premium on the Fox bid. Comcast is also mulling a potential rival offer to Disney for 21st Century Fox assets.
Fox, in a statement, said it remains committed to its cash offer for Sky, which is supported by revised remedies recently offered to the Competition and Markets Authority (CMA) with whom Fox has been co-operating in order to bring the U.K. regulatory process to a “swift and satisfactory” conclusion.