SKT Sky Network Television Limited.

[mistaTea]

Who did the Current ceo work for before sky? Wasn’t it some tv crowd in the uk? Any potential there?...

He did a stint with Sky UK many moons ago...

But more recently he did a stint with a Middle Eastern broadcaster called OSN.

[Jay]

Apart from you guys is anyone else actually speculating on a takeover bid?

That's what I was wondering as well, where did this talk of takeover come from apart from on here
Discl -None held

[mistaTea]

That's what I was wondering as well, where did this talk of takeover come from apart from on here
Discl -None held

We find out by tomorrow if Ogg is a genius...or just some guy on his computer at home in his underwear living with his mother...

[blackcap]

But it is not 'irrelevant'...

I appreciate a bidder couldn't give two hoots what I am 'on the table' for...but ultimately shareholders need to approve any takeover offer..

Shareholders too should not let emotion get in the way of a fair offer. If I have paid $1m for a house, the housing market crashes and now its valued at 500k. If someone came and offered me $600k I would be foolish not to take it. But since I paid $1m for it I would say no? Don't think so. Past price, what people paid for a stock etc, should have no bearing on anything in the future. Granted, I know a lot of people foolishly cannot sell a stock at a loss and would continue holding.

My father is a great example. I told him to get rid of SCY at 45 cents about 2 years ago. But he had paid 48 cents for them and he cannot sell at a loss. Luckily about 3 weeks ago he exited at 14 after 2 years of pressure and nagging from me. Past price is totally immaterial. All that matters is looking forward.

[winner69]

We find out by tomorrow if Ogg is a genius...or just some guy on his computer at home in his underwear living with his mother...

Might find out today ... especially seeing the instos have caught wind of it by following Sharetrader

[mistaTea]

Shareholders too should not let emotion get in the way of a fair offer. If I have paid $1m for a house, the housing market crashes and now its valued at 500k. If someone came and offered me $600k I would be foolish not to take it. But since I paid $1m for it I would say no? Don't think so. Past price, what people paid for a stock etc, should have no bearing on anything in the future. Granted, I know a lot of people foolishly cannot sell a stock at a loss and would continue holding.

My father is a great example. I told him to get rid of SCY at 45 cents about 2 years ago. But he had paid 48 cents for them and he cannot sell at a loss. Luckily about 3 weeks ago he exited at 14 after 2 years of pressure and nagging from me. Past price is totally immaterial. All that matters is looking forward.

I agree with you 100% Blackcap... an investor needs to ideally be looking at everything rationally at all times. If the business is actually worth a third of what it was when you purchased it, and someone offers you that (or a small premium) then the most rational thing to do is sell.

The point I would make though is that, using your numbers, a takeover offer of 24c represents ~$400M. Yes it is a premium to the new shares issued...but existing shareholders (the majority of which will be on the table for the equivalent of a market cap of $700M+) would struggle to view that level of offer as a 'no brainer'.

Is Sky TV, with all the content rights and assets it has and low debt only worth $400M? Only 2.6 times FY20 EBITDA? I don't think a rational investor would sell the business for such a small sum.

So if a takeover does come soon I will be intrigued to see how they play this.

As we experienced with the low ball OGOG offer blackcap, if a bidder missteps with the initial bid it can really backfire.

[Heimand]

That's what I was wondering as well, where did this talk of takeover come from apart from on here
Discl -None held

This is my question as well. I couldn't find anything anywhere!

[kiora]

Won't SKT just commoditise the BB market.
Loss leader?How long can that last?
https://www.scoop.co.nz/stories/HL20...n-to-climb.htm
https://billbennett.co.nz/kacific/

[Ogg]

It's not going to be sold for less than 30 as that would be below an independent valuation.

Infratil raised $300m. They're paying off $50m debt, so that leaves them $250m. If they're going halves, that means they've valued it at $500m, which is pretty close to 30c.

$500m is a nice round number. 30c is also ASB Morningside valuation. That's where I see a likely deal being done.

[blackcap]

Is Sky TV, with all the content rights and assets it has and low debt only worth $400M? Only 2.6 times FY20 EBITDA? I don't think a rational investor would sell the business for such a small sum.

S

There are plenty of rational investors willing to sell the firm for a lot less right now.