Satellite broadcaster, BSkyB, has this morning taken a 9.08% stake in Leeds United in a £13.8 million deal with the club’s owner, Leeds Sporting Plc. It has been expected for some time that a deal would be struck between the two groups (see BSkyB In Talks To Buy Football Stakes), although this is the first official announcement to be made by BSkyB.
The acquisition, which values Leeds Sporting at 30p per share, is subject to the approval of Leeds United shareholders. Sky’s offer price represents a premium of 22.4% on Leeds’ closing price on Friday of 24˝p. Under the deal, BSkyB will act as an exclusive media agent for Leeds Sporting for an initial period of five years.
Commenting on the deal, Vic Wakeling, managing director of Sky Sports, said: “The strategic alliance will allow Leeds Sporting to maximise the return it generates from its media rights, sponsorships and advertising deals, whilst allowing the club to concentrate on its performance on the football field.”
Leeds Sporting chairman, Peter Ridsdale, says: “This agreement is a further exciting step in our declared strategy of developing Leeds Sporting as an integrated sports, media and leisure group”.
In July, media group Granada acquired a 9.9% stake in Liverpool Football Club for £22 million.
At 10:25am today, shares in BSkyB were up 2˝p at 591p.
BSkyB: 0171 705 3000
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