Sky Network Television (ASX:SKT) and Vodafone will merge to create an integrated telecommunications and media group in New Zealand.
SKY will acquire all the shares in Vodafone NZ for $3.4 million NZD. This will be achieved by issuing additional SKY shares which give Vodafone Europe BV a 51% interest in the new Combined Group. In addition, SKY will pay $1.25 million NZD in cash.
The TV network says that the Combined Group will be one of the largest companies listed on the New Zealand Exchange.
SKY also says that for the 2017 FY, the Combined Group will have a forecast pro-forma revenue of $2.9 billion NZD.
The Sky Network reported a net profit of $81.9 million at 31 December 2015.