SKT Sky Network Television Limited.

[mistaTea]

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.

[LoungeLizzard]

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.

We're at $2.45 and the SP will go off a cliff if this deal goes through. So yes, $3 looks pretty good from where I'm sitting (in a padded room, rocking backwards and forwards).

[mistaTea]

We're at $2.45 and the SP will go off a cliff if this deal goes through. So yes, $3 looks pretty good from where I'm sitting (in a padded room, rocking backwards and forwards).

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!

[Balance]

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.

[mistaTea]

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.

But is that even true? Or was the first AFR article just speculative bs?

How can you simultaneously be in the process of selling your business while also being in advanced exclusive talks to make your own acquisition?

[JohnnyTheHorse]

But is that even true? Or was the first AFR article just speculative bs?

How can you simultaneously be in the process of selling your business while also being in advanced exclusive talks to make your own acquisition?

AFR is pretty reliable and the fact Sky refused to comment indicates it's pretty likely. No reason they can't be exploring options to sell the business, whilst at the same time looking for investments if they come up (as a sale isn't a certainty, so can't put life on hold). I'm sure the Mediaworks acquisition would now be a key part of the discussion if they are actually in talks with PE.

If any PE talk is serious then one would expect something imminently, taking advantage of this negative sentiment. Could be a masterstroke leak from PE to save themselves $100m (not saying this with any serious, but you never know... why would the news leak in the first place).

[mistaTea]

AFR is pretty reliable and the fact Sky refused to comment indicates it's pretty likely. No reason they can't be exploring options to sell the business, whilst at the same time looking for investments if they come up (as a sale isn't a certainty, so can't put life on hold). I'm sure the Mediaworks acquisition would now be a key part of the discussion if they are actually in talks with PE.

If any PE talk is serious then one would expect something imminently, taking advantage of this negative sentiment. Could be a masterstroke leak from PE to save themselves $100m (not saying this with any serious, but you never know... why would the news leak in the first place).

Masterstroke indeed. Shareholders that previously might have settled for $3.50 would probably leap at $3 or so now. Just the sad reality.

But the backlash has been pretty strong so hopefully Management have paused for thought.

[Balance]

But is that even true? Or was the first AFR article just speculative bs?

How can you simultaneously be in the process of selling your business while also being in advanced exclusive talks to make your own acquisition?

Street Talk is reputable when it prints such information - that's why it is treated as such in the finance industry.

Pursuing all options - imo that includes inviting takeover offers.

[LoungeLizzard]

Street Talk is reputable when it prints such information - that's why it is treated as such in the finance industry.

Pursuing all options - imo that includes inviting takeover offers.

Pursuing all options? It looks like indecision to me. We've gone from implying the there would be some sort of return to shareholders to trying to sell the business and now throwing good money at the business equivalent of damaged goods. In the meantime the Board has trashed shareholders confidence and revealed themselves to be just as out of touch and backwards looking as the last Board. There simply isn't any positives for shareholders in continually being blind-sided and not knowing from one month to the next where the company is going.

[mistaTea]

Pursuing all options? It looks like indecision to me. We've gone from implying the there would be some sort of return to shareholders to trying to sell the business and now throwing good money at the business equivalent of damaged goods. In the meantime the Board has trashed shareholders confidence and revealed themselves to be just as out of touch and backwards looking as the last Board. There simply isn't any positives for shareholders in continually being blind-sided and not knowing from one month to the next where the company is going.

https://www.nbr.co.nz/market-watcher...up-mediaworks/