Comcast Buys 30% Stake in Sky Following Triumph in Bidding War -- Update

(Updates size of stake, offer being declared mandatory)

By Adam Clark

Comcast Corp. (CMCSA) said Tuesday that it has bought more than 30% of shares in Sky PLC (SKY.LN), after winning a bidding war for the European pay-TV company with a $38.8 billion offer over the weekend.

Comcast said it has bought 515.9 million shares at 17.28 pounds ($22.65) each, the same price as its final bid in the auction for Sky which British regulators held between the cable company and 21st Century Fox Inc. (FOX).

The U.S. cable giant said its offer is now mandatory under U.K. takeover rules.

Comcast said it is now seeking to make further market purchases of Sky at the same price. The company said the price includes Sky's final dividend for the year ended June 30, as the offer is expected to be completed before the usual date for final-dividend declaration and payment.

Fox continues to hold a 39% stake in Sky, and said Sunday that it was considering its options over the minority interest. News Corp, Dow Jones's parent company, and Fox have common ownership.

Comcast Chief Executive Brian Roberts has said he would be prepared to jointly own Sky with a rival. To seal control of Sky, Comcast needs more than 50% of Sky's shareholders to support its offer.

Sky shares at 0741 GMT were up 0.4% at 1,728.50 pence.

Read more about the Sky takeover at https://on.wsj.com/2JhQx1C (WSJ paywall) or https://bit.ly/2QFMMrS (NewsPlus).

Write to Adam Clark at [e-mail]; @AdamDowJones

(END) Dow Jones Newswires

September 25, 2018 04:02 ET (08:02 GMT)

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