Foxtel makes formal bid for Austar

Credit: Austar

Pay TV provider Foxtel has made a bid for Austar United Communications, valuing the target company at $1.93 billion.

Foxtel has offered $1.52 per share in cash for the regional operator, compared with Austar's closing price on Wednesday of $1.265.

Austar said that its board considered the higher offer price to be appropriate for a change of control transaction, and that it would work with Foxtel towards agreeing to a scheme of arrangement to implement the deal.

However, there is no guarantee that a deal would be reached, Austar said in a statement on Thursday.

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