SKT Sky Network Television Limited.

[snigmac]

I trust that the board have discussed all the possible outcomes of the capital management plan already and have selected the one that will be in the best interest to the company and shareholders.

3 weeks to go, in the endgame now.

[Vitamin_A]

You'd have to expect some loose lips somewhere between investment bankers and the SKT board re, capital structure announcement in a couple of weeks. Maybe the actual 24th will be an anti-climax but we see a decent run up beforehand? I'm thinking maybe much of what will be announced on the 24th is already priced in or will be priced in over the next, say, ten days. All valuations point to a share price closer to $4.00 than $3.00. Maybe we will creep closer to $3.00 over the next week. I hope so.

[RGR367]

You'd have to expect some loose lips somewhere between investment bankers and the SKT board re, capital structure announcement in a couple of weeks. Maybe the actual 24th will be an anti-climax but we see a decent run up beforehand? I'm thinking maybe much of what will be announced on the 24th is already priced in or will be priced in over the next, say, ten days. All valuations point to a share price closer to $4.00 than $3.00. Maybe we will creep closer to $3.00 over the next week. I hope so.

I like your optimism Mineral

[Balance]

Knocking on $2.50’s door…

For a stock like Sky which has now demonstrated operational & earnings turnaround, has a strong financial position (surplus cash which provides capital management options) and also clearly has multiple M&A options to pursue, $2.50 is cheap as.

Tempted to add more but I added more during the recent sell down by short term traders so will leave the ones shouting out currently at $2.50 to be taken to others at this stage.

Wake up one morning and the deal will be done and there is no time to get set - that’s still my view.

[LaserEyeKiwi]

Yes, the Board will have received advice from their various 'Helpers' by now I am sure - so they should have a view on what will be best use of the cash pile by now given we are only a few weeks away from the HY results.

The only question is whether someone else can put a deal together with Sky before the cash starts to be distributed.

The Board are in a much stronger position now than a year ago, and are about to do some sort of buyback and dividend...which would certainly push the SP well past the $3/share mark.

So if a deal is to be done, it would need to be compelling enough given where things are at the moment.

Personally, I hope that PE do not make a formal offer at this junction. I would rather let the capital management plan play out, boost the SP and then do a merger deal with Orcon/2D once their own merger is complete (April/May).

That would be my ideal scenario. Obviously if PE came in before then and made a strong offer I am sure I would learn to live with that too.

But I would much rather do a merger deal with Orcon/2D where we can use our shares as currency so that I can continue owning a piece of the business forever.

Sky “merging” with 2D/vocus would be the opposite direction - the much larger private company 2degrees/Vocus Goliath buying the relatively tiny SkyTV (somewhere between 5x-10x size difference by enterprise value). They would be offering cash to sky shareholders if that was to happen, as there would be no publicly listed shares for them to offer (unless they waited until after they IPO’d). Even if 2degrees were to offer shares, you would be receiving shares in a company where sky is a minor segment compared to the rest of the business - for better or worse.

[Moneyman]

If 2degrees/vocus make a move I would be very surprised if Spark didn’t also make play. Sky would be a great addition for any of the telcos in NZ and offer a point of difference to their competitors!

[JohnnyTheHorse]

There we go...hit $2.50

MissusTea must be getting excited. I reckon you should probably push your valentines date out to the 24th, you'd be in for a real treat I'm sure.

In other news, further details on Orcon / 2degrees merger. IPO apparently firmly off the table now that they have deep access to capital. Paywalled: https://www.nzherald.co.nz/business/...ZQREQJ7452D3E/

[Balance]

NBR article on Orcon/2D...https://www.nbr.co.nz/story/orcon-ce...o-degrees-call

In fact, the parties submitted that the deal would have pro-competitive effects, because it would “create an integrated fixed-line and mobile business of scale, with the ability to provide better services to customers (both in terms of enhanced choice, as well as complete solutions and new bundles of services)”.

They are definitely big on the idea of seeking competitive advantage by finding ways to offer more competitive bundles...

There is a huge factor at play which has not been covered by the media or analysts so far imo.

That factor makes the acquisition or merger with Sky almost a certainty.

Only issue to me is timing.

As Rachel Hunter in her youthful day used to say ‘It wouldn’t happen overnight but it will happen!’

Set and ready for action!!!!!$

[snigmac]

What factor are you referring to?

New bundles of services could mean anything.

[ados_nz]

What factor are you referring to?

The factor that Ogg is now SKT's shadow CEO and actually sold his holdings to remove his conflict of interest before taking the role.