Sky raises $600m to support possible acquisitions

by Daniel Farey-Jones, Brand Republic 18-Nov-08, 09:15

LONDON - BSkyB is to raise $600m (£399m) by issuing a ten-year bond to institutional investors, which it says it may use for acquisitions, including broadband firm Tiscali.

The finance will cost Sky 9.5%. It said the money will be used for "general corporate purposes" which could include the refinancing of existing debt and acquisitions of businesses and/or assets in support of its strategy.

Sky is currently in talks with Italian broadband company Tiscali over buying its UK division.

Reports earlier this month suggested that Sky had bid around £450m after rival bidder Carphone Warehouse dropped out and that the final price may now be lower.

The bond placing is expecting to complete on or around November 24.

In 2005 Sky raised £1bn through a bond sale to finance its move into the broadband market.