Murdoch bids for Sky NZ

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The Rupert Murdoch-controlled Independent Newspapers (INL) has made a takeover offer for New Zealand's major digital pay TV service, Sky Network TV, valuing the company at $NZ1.8 billion (E1.6 billion). INL is aiming to buy the 34 per cent of Sky it does not already own.

Telecom Corp of New Zealand, which owns 12 per cent of Sky, has already accepted the offer.

This month, Sky Network TV announced its first post tax profit since launching a satellite digital TV service five years ago. Sky expects its net profit for the current financial year to be about NZ$30 million (E17.2 million), the company said.

INL said formal notice of the offer for Sky was to be made in mid-September. The offer is expected to be dispatched to Sky shareholders in early October. Shareholders will then have 30 days to accept it.