Edition:
United States

21St Century Fox To Spin Off Businesses And Create New “Fox”


Thursday, 14 Dec 2017 07:12am EST 

Dec 14 (Reuters) - Walt Disney Co ::21ST CENTURY FOX TO SPIN OFF BUSINESSES AND CREATE NEW “FOX”; A GROWTH COMPANY CENTERED ON LIVE NEWS AND SPORTS BRANDS AND THE ICONIC FOX BRAND.TWENTY-FIRST CENTURY FOX - SPIN-OFF WILL BE TAXABLE TO 21ST CENTURY FOX, BUT NOT TO ITS SHAREHOLDERS.TWENTY-FIRST CENTURY FOX INC - PRIOR TO COMPLETION OF SPIN-OFF, NEW FOX WILL PAY AN $8.5 BILLION CASH DIVIDEND TO 21ST CENTURY FOX.TWENTY-FIRST CENTURY FOX - NEW FOX WOULD MAINTAIN TWO CLASSES OF COMMON STOCK: CLASS A COMMON AND CLASS B COMMON VOTING SHARES.TWENTY-FIRST CENTURY FOX - ON SPIN-OFF CLOSING, CO'S SHAREHOLDERS WOULD RECEIVE ONE SHARE OF STOCK IN NEW FOX FOR EACH SAME CLASS OF CO'S SHARE HELD.TWENTY-FIRST CENTURY FOX - GOLDMAN SACHS IS LEAD FINANCIAL ADVISOR TO CO AND PROVIDED A BRIDGE LOAN COMMITMENT OF UP TO $9 BILLION TO NEW FOX.TWENTY-FIRST CENTURY FOX INC - CENTERVIEW PARTNERS AND DEUTSCHE BANK ARE ALSO ACTING AS FINANCIAL ADVISORS TO COMPANY.TWENTY-FIRST CENTURY FOX - NEW FOX TO GET STEP-UP IN ITS TAX BASIS COMMENSURATE WITH CORPORATE TAX RELATING TO SPIN-OFF.TWENTY-FIRST CENTURY FOX - DEAL WITH DISNEY VALUES MERGED 21ST CENTURY FOX BUSINESS AT $28/SHARE USING REFERENCE DISNEY SHARE PRICE OF $102.TWENTY-FIRST CENTURY FOX - DEAL WITH DISNEY VALUES MERGED 21ST CENTURY FOX BUSINESS AT NEARLY $30/SHARE BASED ON DISNEY'S DEC. 13 CLOSING PRICE.TWENTY-FIRST CENTURY FOX - NEW "FOX" WILL ALSO INCLUDE COMPANY'S STUDIO LOT IN LOS ANGELES AND EQUITY INVESTMENT IN ROKU.