As they face revenue and competition woes, Vodafone Group Plc and Sky Network Television Ltd., a New Zealand premium TV channel provider, announced a merger that will yield a company worth $2.4 billion.
Sky Network will issue new stocks to Vodafone worth NZ$5.40 which is 21 percent more than the stock’s previous closing price. Vodafone will also receive NZ$1.25 billion in cash from the pay TV provider. The new company will be considered a unit of Vodafone and will be led by Vodafone NZ CEO Russell Stanners and will be chaired by Sky Network Chairman Peter Macourt.
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