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Pay TV provider’s shareholders vote overwhelmingly in favour of NZ$3.44 billion deal at Auckland meeting.
New Zealand’s Sky Network Television on Wednesday revealed that its shareholders voted overwhelmingly in favour of its plan to merge with Vodafone’s local unit at a special meeting in Auckland.
In a stock exchange announcement, the company said that well over 99% of shareholders approved the acquisition and two other resolutions linked to the transaction.
Sky and Vodafone announced the proposed merger of their New Zealand operations a month ago. The firms detailed a NZ$3.44 billion (€2.16 billion) deal that will see Sky first buy out the mobile operator, then Vodafone take a 51% stake in Sky and NZ$1.25 billion in cash.
The pair applied for regulatory approval for the deal last week, insisting that it would not result in any substantial lessening of competition in the residential broadband or pay TV sectors.
In Wednesday’s announcement, Sky noted that in addition to requiring Commerce Commission approval, the deal also needs the green light from the Overseas Investment Office.
For now, Sky chairman Peter Macourt said the company is "delighted" to have the backing of its shareholders.
"This is a great endorsement from our shareholders of this significant transaction, which Sky’s board believes provides an unprecedented opportunity to create an integrated telecommunications and media group that is truly innovative in the New Zealand market and that embraces the digital future," he said.
