Comcast Formalizes Its Offer For Sky - Quick Facts

(RTTNews) - Comcast Corp. (CMCSA) announced its pre-conditional superior cash offer for the entire issued and to be issued share capital of Sky plc (BSY.L, SKY.L). Sky shareholders will be entitled to receive 12.50 pounds in cash for each Sky share. Sky shareholders shall be entitled to receive any final dividend in respect of Sky's financial year ended June 30, 2018, up to an amount of 21.8 pence per Sky share, which is declared and paid prior to the effective date. Comcast said its superior cash offer represents a 16 percent premium to the existing Twenty-First Century Fox, Inc. offer, and implies a value of $31 billion (22 billion pounds) for the fully diluted share capital of Sky.

Comcast said the acquisition will enhance its free cash flow per share in the first year, excluding one-time transaction-related expenses and, within a reasonable period of time, the company expects that the return on invested capital of the acquisition will exceed the weighted average cost of capital. Comcast expects the acquisition to generate annual run-rate synergies of around $500 million. The company currently anticipates that the acquisition will complete before the end of 2018.

To provide financing, Comcast entered into an unsecured bridge credit agreement in an aggregate principal amount of up to 16 billion pounds and an unsecured term loan credit agreement in an aggregate principal amount of up to 7 billion pounds.