Shareholders in James Packer’s majority-owned Consolidated Media Holdings on Wednesday voted overwhelmingly in favour of a US$2 billion takeover by Rupert Murdoch’s News Limited.
The deal will see News, the Australian arm of News Corp, emerge with 50 percent control of Foxtel, the country’s biggest pay TV operator, and all of Fox Sports. Telecommunications giant Telstra holds the other half of Foxtel.
“At the meeting held today CMH shareholders approved the scheme of arrangement… under which News Pay TV Financing Pty Ltd, a 100 percent owned subsidiary of News Corporation, will acquire all of the shares in CMH,” the subscription TV-focused media firm said in a statement.
CMH said 90.13 percent of shareholders present or voting by proxy at the meeting voted in favour of the deal, with 99.91 percent of all votes cast in favour.
It will be taken to the Federal Court of Australia on Friday for formal assent and lodged with the securities regulator the same day, with the intention that trading in CMH’s shares cease by the end of that day.
CMH said the deal, which has already been cleared by the competition and investment regulators, was expected to be implemented on November 19.
The Aus$3.45-per-share deal was in little doubt given CMH’s largest shareholders — James Packer’s Consolidated Press Holdings (50 percent) and Kerry Stokes’ Seven Group Holdings (25 percent) — had already indicated their approval.
Seven had wanted to mount a rival bid but it was knocked back by the Australian Competition and Consumer Commission.
It will be the first time in a century that the Packer family will have no media interests in Australia, apart from a small stake in the Ten Network.
For News Corp, the takeover is its most significant investment in pay television since its bid to buy out British Sky Broadcasting broke down.
Consolidated Media chairman John Alexander told shareholders ahead of the vote, which was held in Perth, that board members unanimously supported the takeover.
“I think that when you get an offer which basically makes overwhelming sense — and our two biggest shareholders thought it made overwhelming sense, the independent expert thought it made overwhelming sense — you have to act in the best interests of shareholders,” Alexander was quoted in The Australian newspaper as saying after the meeting.
Consolidated Media Holdings was formed when Publishing and Broadcasting Ltd, founded by Packer’s grandfather Frank and run by his father Kerry, a one-time arch-rival to Murdoch, changed its name in 2007.
Since Kerry’s death in 2005, billionaire Packer has been moving away from the family’s traditional media business and focusing on creating a worldwide gambling empire.
He has casino interests in Australia and Macau, the world’s biggest gaming hub, and is pushing to build Sydney’s second casino as part of a huge gambling and hotel development on the harbour foreshore.
Shareholders approve Murdoch buyout of Australia's CMH
