Equity fund deal to take NDS private
News Corp is to delist its set-top technology and security subsidiary NDS in a $3.6 billion transaction with private equity firm Permira. The deal will see News Corp reduce its equity stake in the NASDAQ listed company to 49% from the present 72%. Permira would take the remaining 51%, paying $60 per share for News Corpís B series shares, in a combination of $1.5 billion cash and a $200 million vendor note.
A committee of directors not on the News Corp or NDS boards is being appointed to review the transaction.
The deal is close to completion with the transaction already fully negotiated between News Corp, Permira and NDS management. Third party financing is already in place.
A review by the US Securities and Exchange Commission will be required, however the UK Panel on Takeovers and Mergers is unlikely to be involved.
The move is the latest rebalancing of News Corpís interests in the television sector. This week News Corp received regulatory clearance for its takeover of German pay-TV platform Premiere and it has also been linked with a potential purchase of Spainís Digital+.