SKT Sky Network Television Limited.

[Ogg]

So MoringStar saying Vocus NZ is worth $500m.

Does Sky use it's bank draw down and offer $200m cash and then do a 1:1 placement

3.4B shares on issue. Enterprise value at 16c = $744m. Ebita $180m.

[Ogg]

Trilogy International Partners (AKA 2degress) is almost trading negative equality. But ball park figure assuming debt, 2degress is worth about USD$500m.

Bolt that onto the new entity and we're talking a $1.4B enterprise value with $350m EBITA, roughly 5x multiple.

Spark at $8.3B and Vodafone around $3.5B.

[mistaTea]

Upadate to the article. Previously it just said that Sky had been approached for comment.
*********************************
Stubbs sees potential for the same thing happening with Vocus's NZ operation.
"I wouldn't be surprised if Sky TV was having a good look at it," he says.
"It would be a big ask and they have tried something like that in the past with Vodafone, but it could be done."
Sky declined to comment.

*************************

Usually this would have Ogg chomping at the bit! What on earth has changed mate?!?!

[Ogg]

Upadate to the article. Previously it just said that Sky had been approached for comment.
*********************************
Stubbs sees potential for the same thing happening with Vocus's NZ operation.
"I wouldn't be surprised if Sky TV was having a good look at it," he says.
"It would be a big ask and they have tried something like that in the past with Vodafone, but it could be done."
Sky declined to comment.

*************************

Usually this would have Ogg chomping at the bit! What on earth has changed mate?!?!

Sky doing the chomping now not me...

[DownTownJr]

Finally have reception and thought I would check in on this thread and wow, OGG was right except it's SKY wanting to takeover a company lol. I'm all for it if the price is right and hey, I do have trust in Martin.

On another note. No comcom result announcement or have I just missed something?

[tqtq]

Finally have reception and thought I would check in on this thread and wow, OGG was right except it's SKY wanting to takeover a company lol. I'm all for it if the price is right and hey, I do have trust in Martin.

On another note. No comcom result announcement or have I just missed something?

I hope Ogg's call on Vocus is right, if a deal could be done at the right price, it'd be good for the SKT SP.
But I reckon Stubbs is trying to will it to happen by talking about it.
Just like most of do here on this forum.
In fact, he probably put connected the dots by reading this thread.
The media has cottoned on to the fact that Sky speculation gets clicks and is exciting for readers.
If he'd said that on NBR he might have been reported.

[Ogg]

I hope Ogg's call on Vocus is right, if a deal could be done at the right price, it'd be good for the SKT SP.
But I reckon Stubbs is trying to will it to happen by talking about it.
Just like most of do here on this forum.
In fact, he probably put connected the dots by reading this thread.
The media has cottoned on to the fact that Sky speculation gets clicks and is exciting for readers.
If he'd said that on NBR he might have been reported.

It's simple, they've floated the idea (excuse the pun) of an IPO but they're wanting the same EBITA multiple as Spark and Vodafone, which is unlikely, even in this hot market.

The business to me is likely on the down run, and suffered from under investment. It should be valued on a 3x multiple, like Sky.

However, if Sky can get it on a 5x EBITA, it might be a good deal but only if they can get the banks onboard and do an LBO type deal. It would be terrible if Sky did another placement.

The fact that the vendors only want a 100% sell down and it's been on the blocks since 2017 just reeks of desperation.

[Ogg]

Sky is in a strong position here. Once it's cleared the bonds next March, it will have no debt.

With a combined $180m EBITA, it might be able to convince a consortium of banks to go 3 X EBITA debt ratio, ie issue a huge $540m in debt.

It's risky but it could work.

Won't be any dividends though but no placement.

[tqtq]

It's simple, they've floated the idea (excuse the pun) of an IPO but they're wanting the same EBITA multiple as Spark and Vodafone, which is unlikely, even in this hot market.

The business to me is likely on the down run, and suffered from under investment. It should be valued on a 3x multiple, like Sky.

However, if Sky can get it on a 5x EBITA, it might be a good deal but only if they can get the banks onboard and do an LBO type deal. It would be terrible if Sky did another placement.

The fact that the vendors only want a 100% sell down and it's been on the blocks since 2017 just reeks of desperation.

Your arguments are sound, and I don't want to pour cold water over the merits of such a deal. The only thing that doesn't stack-up to me is the timing.
You see, Sky would have had ample opportunity to consider such a deal, especially of Vocus has been wanting to spin-off its NZ operation for a while.
So why did they go ahead and do a deal to launch a broadband product as a virtual ISP if acquiring Vocus NZ was of interest?
Also, let's not forget our friend at Black Crane in HK who's pushing the Chorus tie-up.
I can see why a better multiple could change everything but I couldn't imagine Sky would offer Vocus a better deal for their NZ assets then what they could get through an IPO.
I genuinely hope I'm wrong.

[Ogg]

Your arguments are sound, and I don't want to pour cold water over the merits of such a deal. The only thing that doesn't stack-up to me is the timing.
You see, Sky would have had ample opportunity to consider such a deal, especially of Vocus has been wanting to spin-off its NZ operation for a while.
So why did they go ahead and do a deal to launch a broadband product as a virtual ISP if acquiring Vocus NZ was of interest?
Also, let's not forget our friend at Black Crane in HK who's pushing the Chorus tie-up.
I can see why a better multiple could change everything but I couldn't imagine Sky would offer Vocus a better deal for their NZ assets then what they could get through an IPO.
I genuinely hope I'm wrong.

I really don't know what's been going on over the last few years. Seems like everyone has been screwing around.

But Covid has now changed the media landscape. Everyone has been kicked up the butt. Time to do deals. Like when you're playing monopoly and all the properties have been bought, time to trade!