The minority shareholders have overwhelmingly approve the takeover of Austar by Foxtel.
The deal is schedule to pay out by 26th April 2012 if everything goes smoothly. The only impediment currently is the ACCC ruling. It might be granted in time, not in time or ACCC might still flatly reject the deal going through.
Based on current valuations of $1.45 for Austar and the offer price of $1.52, its a 4.83% premium and an estimated IRR of at least 60%. Quite a large spread to be earned which of course reflects the risk inherent in this deal.
In my opinion, ACCC seems to be leaning towards approving this deal. Given where the markets have been heading, even if the deal falls through it would seem the downside is roughly 20%.
Anyone feeling speculative should invest a small sum. Otherwise, continue staying away from this deal.
Deal was approved by ACCC. Amazing...only happens in Australia
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