Sky Withdraws Its Recommendation Of Fox Takeover After Comcast Offer

(RTTNews) - Sky plc (BSY.L, SKY.L) said that its Independent Committee welcomed today's announcement by Comcast (CMCSK, CMCSA) of its firm intention to make a 12.50 pounds per share pre-conditional cash offer for Sky, which follows its initial possible offer announcement on 27 February.

Meanwhile, Sky said that, as a result of the announcement of this higher cash offer, its Independent Committee is withdrawing its recommendation of the offer announced by Twenty-First Century Fox, Inc. (FOX, FOXA) on 15 December 2016 and is now terminating the Co-operation Agreement entered into with Twenty-First Century Fox on the same date.

Accordingly, certain provisions of the Co-operation Agreement will cease to apply including the obligation on Twenty-First Century Fox to pay a break fee of 200 million pounds. The Co-operation Agreement ensures, however, that certain obligations on Twenty-First Century Fox continue after such termination, including, unless the Independent Committee agrees otherwise, that: the Twenty-First Century Fox Offer cannot close without the approval of at least a majority of independent Sky shareholders and Twenty-First Century Fox will continue to be bound by the standstill provisions agreed to in the Co-operation Agreement.