Telecom network operator Vodafone Group today said it will take a 51 percent stake in a merged entity with New Zealand pay TV provider Sky Network in a NZ$3.4 billion or $2.42 billion merger deal.
The loss-making Sky will acquire Vodafone NZ, giving Vodafone Group a 51 percent stake in the combined group and a cash consideration of NZ$1.25 billion.
“This is a significant and positive step in Sky’s evolution as a premium entertainment company,” said Sky CEO John Fellet in a statement.
Vodafone NZ has more than 2.35 million mobile connections and more than 500,000 fixed-line connections in New Zealand. Sky has over 830,000 subscribers.
The combined group will have forecast pro-forma revenue of NZ$2.9 billion.
