[LINK] FOXTEL announces proposal to acquire AUSTAR

[Marghanita da Cruz]

> Media Release: 26 May 2011
>                FOXTEL announces proposal to acquire AUSTAR
> FOXTEL notes the statement made by AUSTAR today regarding a proposal by
> FOXTEL to acquire AUSTAR at a price of $1.52 per share.
> FOXTEL confirms it has put a conditional proposal to AUSTAR, which, if implemented,
> would result in FOXTEL acquiring 100% of the shares in AUSTAR and the merger of
> the FOXTEL and AUSTAR businesses.
> A successful transaction would bring together two of Australia's major subscription TV
> service providers, creating one of Australia's largest media businesses with over 2,500
> full-time equivalent employees and anticipated revenues of over $2.8 billion with a
> combined investment in original Australian content of more than $500 million per
> annum.
> FOXTEL believes a merger of FOXTEL and AUSTAR would bring significant benefits to
> consumers, in particular:
>      ?  a merged FOXTEL/AUSTAR will be able to roll out new digital products and
>         services even faster to existing and new customers;
>      ?  Australian consumers in regional areas will be able to enjoy access to new digital
>         subscription channels as well as new flexible packages and pricing through
>                                                                             ?
>         products such as FOXTEL on Xbox 360 and FOXTEL on T-Box
>      ?  consumers in regional Australia will also get access to the same quality digital
>         services at the same time as their metropolitan counter parts; and
>      ?  the continuation of the long history over the last fifteen years of FOXTEL
>         investing in and being one of Australia's great innovators in media delivery.
> It is FOXTEL's intention to maintain the world class AUSTAR facility in Robina, Gold
> Coast, which would be an important part of the combined group.
> "This is a logical transaction with significant consumer and industrial upside for all
> stakeholders. The two companies are a complementary fit," said FOXTEL CEO Mr Kim
> Williams AM. "If the merger were to go ahead, it is a win-win transaction that delivers
> value to AUSTAR shareholders, synergies and growth opportunities for FOXTEL and
> increased services and choice for all consumers."
> FOXTEL's proposal to AUSTAR is indicative, non-binding and subject to a number of
> conditions and there can be no certainty that any transaction will eventuate.
> Conditions to the finalisation of any transaction include the Board of AUSTAR
> recommending the transaction to AUSTAR shareholders, the completion of due
> diligence by FOXTEL and entry into definitive transaction documents once approved by
> the Boards of FOXTEL and its Partners. Any transaction will be subject to regulatory
> approvals, including from FIRB and the ACCC.
> The transaction would be funded by a combination of FOXTEL bank debt and
> shareholder capital contributions.
> FOXTEL is being advised by AquAsia, UBS AG and Allens.
> For more information call: Adam Suckling, FOXTEL, on 0419 205 488 or Brian
> Tyson/Peter Ogden, Kreab Gavin Anderson, on (02) 9552 4499
> About FOXTEL
> FOXTEL is Australia's leading subscription television provider and is connected to over 1.63 million homes on cable
> and satellite through retail and wholesale distribution. FOXTEL strives to ensure subscribers find TV they want to
> watch every time they switch on through delivery of more than 200 channels covering news, sport, general
> entertainment, movies, documentaries, music and children's programming. FOXTEL is owned by Telstra Corporation
> Ltd (50%), The News Corporation Ltd (25%), and Consolidated Media Holdings Ltd (25%).
<http://www.telstra.com.au/abouttelstra/download/document/tls776-foxtel-announces-proposal-to-acquire-austar.pdf>
-- 
Marghanita da Cruz
http://ramin.com.au
Tel: 0414-869202