News Corp is effectively selling around half its stake in the business to Permira as part of a complex deal. News Corp currently owns 72 per cent of NDS’s equity, controlling 96 per cent of the voting rights. Under the terms of the deal, which values NDS’s equity at $63 a share, News Corp will reduce its holding to 49 per cent, with Permira owning per cent. In return, News Corp will receive $1.52 billion in cash plus a $242m vendor note from Permira.
Abe Peled, Chairman and CEO of NDS said: “With the convergence of broadband and broadcast technology, new frontiers lie ahead for NDS. NDS needs to have the strategic agility and flexibility to enter into any type of value enhancing transactions. The current ownership structure was imposing certain limitations. Therefore News Corporation has decided to reduce its ownership position in NDS so that NDS can capitalise on these new opportunities with a more independent structure and the expertise of Permira.”
Shares in NDS rose 14 cents to $60.64 on confirmation of the deal.