News Corp is set to sell its entire 44% stake in New Zealand pay TV service Sky Network Television Limited.
New Corp’s Australian News Limited subsidiary has appointed Deutsche Bank to underwrite and, together with Craigs Investment Partners, manage the sale of its Sky shares.
News Corp said that it expects to sell its shares to a “broad range of institutional and retail investors.” At News Corp’s request, Sky has stopped trading to allow the transaction to take place, with trading expected to recommence by Wednesday March 6.
“Sky is a world class subscription television business and has been an outstanding investment for News Corporation,” said News Corp president and COO Chase Carey.
“We and Sky have always enjoyed an excellent, arms-length working relationship and we expect this to continue unaffected by the sale. In particular, we do not anticipate any change to current arrangements regarding access to content and collaboration on technology.”
Michael Miller, regional director of News Limited, will resign from the Sky board as a result of the sale.
The news comes after News Corp announced last summer that it plans to divide its business, separating its film and TV and its and publishing activities into two companies.