Sky has recommended its shareholders accept Comcast’s (NASDAQ: CMCSA) $40 billion takeover offer.
In a statement released on Monday, the UK broadcaster advised shareholders to accept the offer by the October 11 deadline.
“As the price of the Comcast Offer is materially superior, it is in the best interests of all Sky shareholders to accept the Comcast Offer,” the company said.
“Accordingly, the Independent Committee unanimously recommends that Sky shareholders accept the Comcast Offer, and in order to ensure the successful closing of the Comcast Offer, and given the possibility of a delisting of Sky in the near future, urges shareholders to accept immediately.”
Comcast outbid Twenty-First Century Fox (NASDAQ: FOXA) for Sky on Saturday by $3.6 billion. The deal is worth £17.28 per share, higher than Fox’s of £15.67 per share.
Martin Gilbert, chairman of the Independent Committee of Sky, said: “We consider the Comcast Offer to be an excellent outcome for Sky shareholders, and we are recommending it as it represents materially superior value. We are focused on drawing this process to a successful and swift close and therefore urge shareholders to accept the recommended Comcast Offer,”
Fox now has to decide what to do with the 39 percent of Sky it owns, which it agreed to sell to Disney (NYSE: DIS) along with its entertainment assets in a deal that was approved by both sides in July.
The group said it would “make a further announcement in due course.”
Shares in Sky (LON: SKY) jumped nine percent to £17.22 in Monday’s early trading. Shares are currently trading up 8.74 percent 1141GMT).
