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[Satellite TODAY 05-31-11] In a major potential piece of consolidation in the Australian satellite market, Foxtel has made an offer to acquire pay-TV rival Austar. Foxtel announced the proposed acquisition May 26.
Foxtel and Austar are the leading providers of satellite TV services in Australia. Austar has around 755,000 subscribers; Foxtel has just above 1.5 million direct pay-TV subscribers.
Foxtel is offering a price of A$1.52 ($1.61) per share to acquire Austar. The conditional proposal, which has been put to Austar, if implemented, would result in Foxtel acquiring 100 percent of the shares in Austar and the merger of the Foxtel and Austar businesses.
“This is a logical transaction with significant consumer and industrial upside for all stakeholders. The two companies are a complementary fit. If the merger were to go ahead, it is a win-win transaction that delivers value to Austar shareholders, synergies and growth opportunities for Foxtel and increased services and choice for all consumers,” Foxtel CEO Kim Williams said in a statement.
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