SKY Perfect Merging With JSAT


The Nihon Keizai Shimbun reported that Japanese DTH service SKY Perfect is merging with satellite operator JSAT, which provides carriage for the satellite TV service. The news report prompted this reply from SKY Perfect:

SKY Perfect is currently looking into strengthening its relationship with and possible merger with JSAT, but nothing definite, including the stock transfer ratio, has been decided on at this stage. SKY Perfect will immediately disclose if anything on this matter is decided.

But Reuters goes a little deeper:

Japanese satellite broadcaster Sky Perfect Communications Inc. will acquire satellite communications company JSAT Corp. and create a holding company next spring, the Nihon Keizai business daily reported in its evening edition on Wednesday.

The paper said Sky Perfect will become a holding company, while creating a new entity for its operations. The holding company will bring the new firm and JSAT under its umbrella.

Each JSAT share will likely be swapped for about 4 shares in the holding company, the paper said.

Based on Sky Perfect’s closing share price on Wednesday, the deal would value JSAT at around 93.7 billion yen ($786 million), 7.5 percent below actual market capitalisation.

Shares in Sky Perfect closed down 1.9 percent at 65,700 yen, and JSAT ended down 2.4 percent at 284,000 yen. They underperformed the benchmark Nikkei average’s 0.48 percent fall.

Sky Perfect currently does not own JSAT shares. JSAT, which transmits programming for Sky Perfect’s Sky PerfecTV, holds a 6.9 percent stake in Sky Perfect.

Interesting to note SKY Perfect, the leading satellite TV service in Japan, started up its own IPTV service, OptiCast. For about $25 (3,000 yen), you get 68 channels.  Such a deal.