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News Corp backs €340m Sky Deutschland financing

News Corp has agreed to back €340m of financing measures for Sky Deutschland.

The financing measures, which are expected to be complete by January 31 2011, could lead to News Corp boosting its stake in the German pay-TV operator to 49.9% from its current 45.42% holding. The measures will consist of a rights offering of up to 269.6 million newly issued registered shares, which may be combined with a bond issued to News Corp that is convertible for up to 53.9 million underlying Sky Deutschland shares, as well as, or instead of, a loan provided by News Corp.

News Corp said it will have the right to convert the bond into equity at any time following a 40-day holding period, subject to certain black-out periods. If not converted, News Corp will have the option to redeem the bond for cash upon its maturity in four years.