Shareholders of pay-TV operator Sky Network Television have voted in favour of a merger with Vodafone New Zealand.

Sky intends to buy all the shares in Vodafone NZ for 3.44 billion New Zealand dollars (€2.21bn), to be funded by payment of NZ$1.25 billion in cash and the issue of new Sky shares at a price of NZ$5.40 each. Vodafone NZ’s parent, the UK-based Vodafone Group, would own a 51 per cent stake in the combined business.

Sky anticipates the proposed transaction will generate post-tax net present value of around NZ$850 million after integration costs.

Sky chairman Peter Macourt told shareholders that the industry was at a crossroads. “The Internet has permanently changed the way people consume media and entertainment services,” he said. “To stay ahead of the game, we must find new and innovative ways to deliver our content.”

The proposal still needs regulatory approval from the Overseas Investment Office and the Commerce Commission.

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