Ann: Sky Investor Update, page-4

I think M&A activity on the cards.

If Sky is buying something all we can hope is that it is not another foolish investment like RugbyPass.

More likely, in my opinion, is that someone is going to buy Sky. Just checked current market cap - sitting at NZ$420M. A 30-50% premium would indicate a sale price of NZ$550M-$630M.

I would suggest that Sky would probably go the higher range premium due to the strong Balance Sheet, so probably for ~NZ$600M (~NZ$3.43/share) which would be a 43% premium to the current SP. With a current cash balance of ~NZ$150M (and zero debt) I think it would be hard for The Board to justifiably recommend a sale for much less (though I don't think we should kid ourselves that they are in a position to negotiate for much more!).

Not a 'bad' deal for shareholders given the sustained pessimism by the public markets continuing to afflict the quoted value and it gives certainty to shareholders.

And a very shrewd deal for the right buyer because they would effectively be purchasing Sky's operations for NZ$450M.

Only thing to do is wait and see. We have been down this speculation road before...but the announcement today was certainly very interesting!