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News Corp. makes bid for Australia's Consolidated Media Holdings

June 19, 2012|By Joe Flint
  • News Corp.'s Rupert Murdoch is looking to get bigger in Australia.
News Corp.'s Rupert Murdoch is looking to get bigger in Australia. (Associated Press )

News Corp. has made a roughly $2-billion offer for Consolidated Media Holdings, an Australia-based holding company that co-owns, with News Corp., substantial media assets in that region.

In a statement, Consolidated Media said News Corp. had offered AU$3.50 per share, a 13.6% premium from the stock's trading price on Wednesday on the Australian Securities Exchange.

News Corp. and CMH are partners in Foxtel and Fox Sports Australia, two large pay-TV companies in Australia. Currently News Corp. owns 25% of Foxtel and 50% of Fox Sports Australia. Should the deal with CMH go through, News Corp. would own 50% of Foxtel and 100% of Fox Sports Australia. The remaining 50% of Foxtel is owned by Telstra Corporation

James Packer, the executive chairman of CMH’s largest shareholder, Consolidated Press Holdings Limited, said the company welcomes News Corp.'s offer and will move forward on working out the details of the terms and conditions and will "support the Proposal in the absence of a superior cash offer.”

The proposed deal will also have to be approved by Australian regulators.

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