Austar denies claims of takeover agreement

Subscription TV provider Austar (ASX:AUN) has denied reports major shareholder Liberty Global has agreed to sell its stake to Foxtel in a deal valuing Austar at $1.9b

Subscription TV and telecom service provider, Austar (ASX:AUN), has denied claims that major shareholder Liberty Global had settled on a price for its majority stake in the company that would value it at $1.9 billion.

Austar said it had confirmed with Liberty Global that no agreement has on price has yet been made between Liberty Global and Austar's suitor, fellow subscription television provider Foxtel.

The Australian Financial Review reported that Liberty and Foxtel had agreed to a price of $1.49 per share, but Austar called this claim “uninformed and inaccurate.”

It repeated the assertion that there is no guarantee that the discussions between its parent an Foxtel will result in a sale.

A potential deal would require approval from regulators. The ACCC has announced it is monitoring speculation of the acquisition.

Foxtel is 50 per cent owned by Telstra, 25 per cent by News Corp and 25 per cent by Consolidated Media Holdings (ASX:CMJ).

AUN shares grew 3.42 per cent on Friday to $1.360.

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Tags businesstelecomsAustarLiberty Global Incsharessubscription tvmajority stake

More about Austar EntertainmentAustralian Competition and Consumer CommissionAustralian Financial ReviewAustralian Financial ReviewFoxtelNewsTelstra Corporation

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