Way cleared for CMH takeover by Murdoch’s News Ltd
31 Oct 2012
Shareholders of Australia's Consolidated Media Holdings (CMH), majority-owned by James Packer, today voted overwhelmingly in favour of a A$1.94 billion dollar ($2 billion) takeover by News Limited, the Australian arm of Rupert Murdoch's News Corp.
The deal will see News Ltd holding 50 per cent control of Foxtel, the country's biggest pay TV operator, and all of Fox Sports. Telecommunications giant Telstra holds the other half of Foxtel.
A CMH statement said 90.13 per cent of shareholders present or voting by proxy at the meeting in Perth voted in favour of the deal, with 99.91 per cent of all votes cast in favour.
"At the meeting held today CMH shareholders approved the scheme of arrangement ... under which News Pay TV Financing Pty Ltd, a 100 per cent owned subsidiary of News Corp, will acquire all of the shares in CMH," the subscription TV-focused media firm said.
It will be taken to the Federal Court of Australia on Friday for formal assent and lodged with the securities regulator the same day, with the intention that trading in CMH's shares cease by the end of that day.
CMH said the deal, which has already been cleared by the competition and investment regulators, was expected to be implemented on 19 November.