Vodafone gets 51% in $2.4 bn merger with Sky New Zealand

A staff member poses with a mock oversized Vodafone Secure SIM card at the Vodafone booth at the CeBit computer fair in Hanover, March, 5, 2012. REUTERS/Fabrizio Bensch/Files
Telecom network operator Vodafone Group today said it will take a 51 percent stake in a merged entity with New Zealand pay TV provider Sky Network in a NZ$3.4 billion or $2.42 billion merger deal.

The loss-making Sky will acquire Vodafone NZ, giving Vodafone Group a 51 percent stake in the combined group and a cash consideration of NZ$1.25 billion.

“This is a significant and positive step in Sky’s evolution as a premium entertainment company,” said Sky CEO John Fellet in a statement.

Vodafone NZ has more than 2.35 million mobile connections and more than 500,000 fixed-line connections in New Zealand. Sky has over 830,000 subscribers.

The combined group will have forecast pro-forma revenue of NZ$2.9 billion.