MUMBAI: News Corporation has completed its $2 billion acquisition of Australia media company Consolidated Media Holdings, which holds 50 per cent of Fox Sports and 25 per cent of Foxtel.

News Corp had on 20 June made a $2 billion bid to wrest control of CMH which would give it a greater share of Australia‘s pay television market. CMH‘s board backed the offer in the absence of a higher bid.

The buyout will see the exit of Australian billionaire James Packer from media business as he sets out for a bigger play in the gambling business. Packer, the son of late media baron Kerry Packer, held 50.1 per cent stake in the CMH.

The deal will give News Corp‘s Australian subsidiary News Limited a complete ownership of Fox Sports, an equal joint venture partnership between Consolidated Media and News Corp, and a 50 per cent stake in pay TV operator Foxtel, which is half owned by Australian telecom and media company Telstra Corporation with News Corp and CMH holding a 25 per cent stake each.

As per the agreement, News Limited and News Pay TV Financing (News), 100 per cent owned subsidiaries of News Corporation, will acquire CMH for $3.45 cash per share by way of a scheme of arrangement.

The scheme consideration of $3.45 represents an implied multiple of 9.4x EV/Ebitda based on a proportional consolidation of CMH‘s main investments in Foxtel and Fox Sports.

CMH‘s major shareholders CPH executive chairman James Packer said, "I am delighted that CMH and News have reached agreement on the terms and conditions, and as I said in June, CPH will support the Scheme in the absence of a superior cash proposal. In my view, this is a great outcome for CMH shareholders and for News and it reflects a fair price."

The implementation of the Scheme is subject to a number of customary conditions including CMH shareholder and Court approvals.