SKT Sky Network Television Limited.

[snigmac]

With the wording of the annoucement it is possible that Sky was encouraged to looked at MW and complete due diligence. The annoucement states that there is a high degree of uncertainty. In my mind that would suggest that the deal is unlikely to go ahead until further information becomes available. Add the market reaction and analyst comments, I don't think Sky will proceed. If we assume Sky doesn't take over MW, is Sky now required to make another annoucement as soon as DD has been completed to propose a capital management plan?

[jimdog31]

With the wording of the annoucement it is possible that Sky was encouraged to looked at MW and complete due diligence. The annoucement states that there is a high degree of uncertainty. In my mind that would suggest that the deal is unlikely to go ahead until further information becomes available. Add the market reaction and analyst comments, I don't think Sky will proceed. If we assume Sky doesn't take over MW, is Sky now required to make another annoucement as soon as DD has been completed to propose a capital management plan?

Snigmac me ol mate. I'm praying you're right here. I don't think it changes when they discuss capital management as they've essentially put that off until august now anyway.... that was before the beans were spilled.

[Entrep]

With the wording of the annoucement it is possible that Sky was encouraged to looked at MW and complete due diligence. The annoucement states that there is a high degree of uncertainty. In my mind that would suggest that the deal is unlikely to go ahead until further information becomes available. Add the market reaction and analyst comments, I don't think Sky will proceed. If we assume Sky doesn't take over MW, is Sky now required to make another annoucement as soon as DD has been completed to propose a capital management plan?

This is very wishful thinking. The Sky board are the worst on the NZX.

[jimdog31]

MARKETS

Fonterra shares jump after share buyback programme announced

Oh look! an appropriate management response to an undervalued share price! imagine that?

Fonterra said it plans to spend up to $50 million on buying back its own shares from June 30.
The move is in reaction to the steep decline in the share price following Fonterra’s announcement on May 6 last year to restructure its capital base.
The shares, which can be owned only by farmers, closed Tuesday at $2.50, up from their record low at $2.22 late last month but down from $4.56 on May 5, 2021.
Chair Peter McBride said Fonterra has “looked at prevailing prices” alongside the co-operative’s strategy and overall business performance.

"Fonterra Co-operative Group's shares were also up 14% to $2.85."

So share price went from $2.22 to $2.85 in2 days .....

Meanwhile at sky.....

[Baa_Baa]

@Snowy, what's your thoughts on this, TIA.

[moimoi]

Hmm you're right. In that case, the approval by ordinary resolution is likely not something required by listing rules. Instead, it is in there to protect the board by having shareholders vote on the deal. It would also be a condition of any contract before going unconditional.

Essentially if we aren't getting paid for MW (i.e the deal isn't favourable) then we can vote no and the transaction won't proceed. Nothing to worry about, expect potential competence of management.

Except that in the general course of things...(which you may well know but maybe some others don't)

- Posters on Sharetrader highlighting that their going to vote no are unlikely to tip any company vote to no given share registries are dominated by institutional shareholders.

- Companies canvas the support of the same institutional shareholders BEFORE making any public comment or disclosure to public markets to inform the rats n mice retail holders.

- Name one company proposal voted down by retail holders on the NZX in the last say 20 years......?) ((Tip: There are none))

- While colourful...the last 10 days of posters probably hold less than 5% of the registry in aggregate. (could be wrong but doubt there is anyone in the top 20 posting on here..no offence)

Clearly very uncertain but the market appears to be surmising no capital return and no divi..

GLTA

[Rustycage]

Although I agree with most of what you’ve said there moimoi, unless there is no real skin in the game for the institutional holders (I.e. they are managing OPM only and don’t give a s*** what actually happens), surely they, like us, think that this deal sounds like an epic waste of $?

I haven’t seen a single person on here or hotcopper say “hey, this kinda sounds ok/good”

[mistaTea]

Although I agree with most of what you’ve said there moimoi, unless there is no real skin in the game for the institutional holders (I.e. they are managing OPM only and don’t give a s*** what actually happens), surely they, like us, think that this deal sounds like an epic waste of $?

I haven’t seen a single person on here or hotcopper say “hey, this kinda sounds ok/good”

Yes, 92% of shares controlled by those 9% of shareholders that have 100K+ shares - so obviously Sharetrader posters represent a relatively small percentage.

But as you say, the deal still has to stack up to get enough insto support. And I am sure they are scratching their heads as much as we are about this deal.

If SM announces a deal with MW - it is going to have to be very compelling to get the support.

And that will ultimately come down to price and how good a story she can spin about synergies and growth opportunities.

She would also need to make sure some sort of dividend is still paid I think (the bribe).

It’s a tall order I think.

[mistaTea]

They will hammer away at the “cross promotional” benefits/synergies no doubt.

Once we merge we will be the one-stop shop and preferred advertiser etc as we can offer attractive TV, radio and billboard packages to maximise your reach.

And, to be fair - that would be true.

However what is the upside to that realistically?

If combined advertising revenue is $280Mish…a solid 10% increase only pushes revenue up by $28M.

[winner69]

LOL.

I remember meeting Blair Woodbury in his office. I ended up drawing a diagram on his whiteboard to explain a concept around value creation/perception and why Sky finds itself in the situation it does today (a Kiwi brand disliked by many Kiwis).

He may have just wanted to get rid of me by that point and humoured me with the old “I’ve just learnt something new today” - but it did actually seem to grab his attention.

So if I get on the Board the first thing I am doing is drawing that stuffing diagram for them!!!

This Mediaworks thing is all mistertea’s doing ……Blair showed me that diagram and it definitely mentioned Mediaworks

From late 2020