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Australia's largest pay-tv provider Foxtel’s $2 billion bid for regional pay-TV provider Austar United Communications Limited (ASX:AUN) has advanced.
Austar said yesterday it has entered into a definitive agreement with its 54 per cent stake holder, Liberty Global, and Foxtel.
Under the deal Foxtel will acquire 100 per cent of Austar via a series of transactions valued at $1.52 per share.
While the transaction is still dependant on shareholder and regulatory approvals, Foxtel's high-profile shareholders, Telstra Corporation Limited (ASX:TLS), News Corporation (ASX:NWS) and Consolidated Media Holdings Limited (ASX:CMJ) are all backing the deal.
In the 2010 financial year Austar reported a net profit of $99.65 million.
