News Corp to sell stake in Sky in New Zealand
NEW YORK (AP) — News Corp. said Sunday that it is selling its 44 percent stake in Sky Network Television Ltd., a pay TV broadcasting service in New Zealand.
The news caused the halt of trading in Sky shares in New Zealand on Monday morning. Its latest share price was 5.17 New Zealand dollars ($4.24). That made News Corp.'s stake in the company worth approximately $725 million.
The company said Sunday that a subsidiary, News Ltd., has hired investment banks to help with the share sale to institutional and retail investors.
As a result of the sale, a News Ltd. regional director, Michael Miller, will resign from the Sky board.
News Corp. has been selling off minority stakes in companies as it prepares to separate into two companies, one holding its struggling newspaper and Australian assets, the other its faster growing film and TV assets.
The move is intended to boost the value of its entertainment company, which will be renamed Fox Group.