SKT Sky Network Television Limited.

[Ogg]

It all depends on how much Vocus AU want for Vocus NZ,

They want $700m enterprise valuation (I think).

The key is that they want a full sell down. Doing an IPO with a full sell down is difficult. Hence why the IPO might flop and Sky could have the opportunity.

A $700m valuation is pricey given that Sky is valued at $260m

The valuation of Vocus isn't an issue, it's the ratio between the two that's important. A new entity needs to be formed, with Sky and Vocus getting new shares. It's just how you slice up the pie.

[Ogg]

It's weather Jupitar, ACC, Blackcrane, and other institutional investors etc want to buy into the new entity. Seems like a good idea, especially if you can issue retail and bank debt.

[Ogg]

Hopefully existing Sky retail shareholders get offered new shares at the "IPO" or book valuation price etc in the new entity.

Some type of leverage joint buy out with bank and retail bond debt.

[mistaTea]

If they want $700M forget it, they can carry on with their IPO plans.

If they will sell to Sky for a more reasonable sum, and if Sky can finance the purchase without screwing shareholders over by using equity then great. This is what I hope they ware working on.

If those conditions can't be met, then oh well - we stick to the current plan.

Btw, the 6 month trial of broadband is not indicative of a launch date. The launch of Sky Broadband should happen well before the trial ends unless something goes horrible wrong.

[Ogg]

If they want $700M forget it, they can carry on with their IPO plans.

They will be valued at $700m but Sky will be bumped up to $500m valuation under a new entity. So $1.2b valuation of new company. Maybe $400m of that debt?

[mistaTea]

They will be valued at $700m but Sky will be bumped up to $500m valuation under a new entity. So $1.2b valuation of new company. Maybe $400m of that debt?

We have double the revenue and double the EBITDA.

How on God's green earth would that be fair?

[Ogg]

We have double the revenue and double the EBITDA.

How on God's green earth would that be fair?

I dunno, Andrew Hirst will cook something up.

[Ogg]

The main point is to load up with as much debt as possible. Let the mom and pa bond holders take all the risk...

[Ogg]

This could work out quite well, if the new entity can bolt on 2Degrees at some stage. They could become the 3rd biggest telco in NZ and challenge Vodafone/Spark.

[Ogg]

Sky does bring a lot to the table. Having 1m customers and also a decent brand name (Ocron and Slingshot will be gone).

All this value right now trading at only $270m.