Sky Deutschland shares up after cap hike details

FRANKFURT, Sept 13 (BestGrowthStock) – Shares in German pay-TV
channel Sky Deutschland (SKYDn.DE: ) rose up to 3.5 percent on
Monday, a day after the group set the subscription price of its
rights issue at 1.05 euros ($1.34) per share. [ID:nWEA7662]

News Corp (NWSA.O: ), which holds a 45.42 percent stake in the
group, will partially backstop the capital increase so that its
shareholding does not exceed a level of 49.9 percent.
The subscription period starts on Tuesday and is due to run
until Sept. 27.

Sky Deutschland, formerly known as “Premiere”, said it will
issue close to 270 million shares. At the given price, this
would equate to total additional capital of around 283 million
euros.

Shares in the group, currently valued around 1.0 euros
apiece, were outperforming the 0.4 percent stronger German
mid-cap index (.MDAXI: ), trading 3.2 percent higher at 0843 GMT.
[ID:nLDE68C0DZ]

“Shares were already hit hard after the first announcement
of the upcoming capital increase. Additional impact should thus
be limited,” traders from the Alpha brokerage wrote, adding that
shares may move closer to the subscription price.

Sky Deutschland’s main draws are live Bundesliga soccer
matches. It also broadcasts Hollywood movies, documentaries,
drama, TV series and pornography.
(Reporting by Josie Cox; Editing by Louise Heavens)

Sky Deutschland shares up after cap hike details