By Gavin Lower
MELBOURNE--Consolidated Media Holdings Ltd. (CMJ.AU) said
Wednesday that shareholders approved News Corp.'s (NWS) 1.94
billion Australian dollar (US$2.01 billion) takeover of the
company.
The deal will see News Corp., the owner of The Wall Street
Journal, increase its footprint in Australia's pay television
industry, doubling its share of subscription television company
Foxtel to 50%, and full ownership of sports channel Fox Sports.
Australian telecommunications giant Telstra Corp. (TLS.AU) owns
the remaining 50% of Foxtel.
The shareholder vote wasn't in doubt given Consolidated Media's
two largest shareholders - James Packer's Consolidated Press
Holdings Ltd. with 50.1% of the company and Kerry Stokes' Seven
Group Holdings Ltd. (SVW.AU) with 25% - previously saying they
would support the deal.
News Corp. made a A$3.45-a-share bid for Consolidated Media in
September, which was lower than its original non-binding proposal
of A$3.50 in June.
While Consolidated Press Holdings was an early supporter of the
takeover, Seven Group only came on board early this month when the
Australian Competition & Consumer Commission, or ACCC, rejected
its own proposal to take over Consolidated Media.
The ACCC said it was concerned about the impact on competition
in the free-to-air television sector if Seven Group, which owns 33%
of media company Seven West Media Ltd. (SWM.AU), were allowed to
buy Consolidated Media. The regulator's decision sent a message
that it would be uncomfortable about deals involving pay television
owners and free-to-air broadcasters.
Write to Gavin Lower at gavin.lower@wsj.com
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