Todd ends 22-year interest in Sky TV, sells stake to Credit Suisse
BUSINESSDESK: Todd Communications, part of the privately owned Todd Corp, has agreed to sell its 11.1% stake in Sky Network Television to Credit Suisse, ending a 22-year tie with the listed pay-TV operator controlled by BskyB in a deal worth $218 million.
Todd Communications sold the 43.2 million shares at $5.05 apiece, a 5.8% discount to their trading price yesterday.
The agreement is dated November 1 and is expected to settle on November 8, when Todd will file a notice of ceasing to be a substantial holder of the company.
The shares fell 3.9% to $5.15 in trading today.
Former Todd Capital managing director Robert Bryden has been deputy chairman of Sky TV since 2001 and a director since 1990. He retired from Todd Capital in September 2011.
A spokesman for Todd was not immediately available.
Sky TV chief executive John Fellet said Todd has said it was "capital rotation" and he wouldn't be surprised to see a new Todd investment emerge in coming months.
"I thanked them for all their support over the years," he told BusinessDesk. The Todds had been invested in Sky TV longer than he had run the company.
The Todd family is among New Zealand's richest. The group appeared on the register in 1997 after Sky's initial public offering.
Sky Network Television, as it is known today, was created in 2005 when Sky merged with INL and Todd increased its stake.
First NZ Capital Securities, the local affiliate of Credit Suisse, disclosed a 5.5% interest in Sky TV, partly reflecting its role as a sub-underwriter of a sale of shares by Todd Communications and partly because of shares held by its Harbour Asset Management unit, it says in a separate statement.
Shares of Sky TV are up 1.3% this year. The stock is rated "hold" based on a Reuters poll of 10 recommendations, with a price target of $5.275.