The directors of Independent Newspapers (INL) say shareholders should rubber stamp Telecom's plans to sell its 12 per cent stake to Rupert Murdoch's News Corp.
Their recommendation was based on an independent adviser's report from Grant Samuel which, said INL director John Hunn, found that a Telecom/News Corp deal would
not disadvantage other INL shareholders.
"Grant Samuel also concluded that INL shareholders will be no worse off as a result of News changing from a 43.7 per cent shareholding in INL to a 43.6 per cent shareholding in the company formed from the merger of INL and Sky," he said.
Under the planned deal, News Corp will pay $272 million, or $6.19 a share, for the Telecom stake. This would be a 5.8 per cent premium on INL's May 10 share price.
The sale is conditional on INL shareholder approval which will be sought at a special meeting in Wellington on June 9. Telecom and News Corp will not be allowed to vote their shares.
Other conditions include the need for the High Court, INL shareholders and Sky shareholders to approve the planned INL/Sky Television merger.
Sky and INL shareholders are meeting on June 13 to consider the merger. The boards of both companies have approved the plan.
Without Telecom's stake in INL, News Corp would have just over 34 per cent of the merged INL and Sky company. With the stake, it will own almost 44 per cent.
