Foxtel to acquire Austar for $2.5 billion

Foxtel will acquire Austar by a series of transactions including a scheme of arrangemen, for the purchase of approximately $2.5 billion, it has been announced.

The merger brings together two of Australia’s largest subscription television providers and create a business with over 2500 employees with an anticipated revenue of more than $2.8 billion and an investment of $500 million per annum in original Australian content.

Shareholders will receive$1.52 in cash per share.

The cash payment of $1.52 per share represents: