News Corp takes control of Sky-D
January 14, 2013 09.15 Europe/London By Julian Clover
News Corp has agreed to support €438 million of new equity into Sky Deutschland. At the same time it will increase its holding in the German pay-TV platform from 49.9% to 54.5%.
The new bank financing, guaranteed by News Corp, will replace Sky-D’s current bank debt facilities. Included in the €438 million are rights payments for the broadcast of Bundesliga football for the 2013/14 to 2016/17 seasons and the outstanding €144 million announced on February 2, 2012.
As a result Sky Deutschland will become a consolidated entity of News Corporation.
“We have always believed in Sky Deutschland’s ability to transform the pay TV experience in Germany and Austria and this new financing structure further validates that longstanding commitment,” said Chase Carey, president and chief operating officer, News Corporation. “News Corporation’s continued investment underscores the value we see in Sky Deutschland and the significant market opportunities it faces, and reflects our confidence in its management team and their strategies for growth.”
Under the new financing structure, Sky Deutschland’s existing bank debt facilities will be repaid in full and be replaced by a new €300 million five-year bank credit facility. In addition, News Corporation has agreed to extend the maturity of existing shareholder loans of €106 million plus accrued interest.