Foxtel has put its initial public offering (IPO) plans on hold as a result of rising domestic and international in recent months.
Insiders involved with the deal told The Australian that worldwide inflation, forecast for multiple rate rises and the ongoing war in Ukraine are all factors that have played a part in delaying the public float of the News Corporation-owned TV platform.
It was widely speculated in the industry that an announcement of the IPO would be made by the end of the month and the company publicly listed by the end of the financial year, but it is likely the deal won’t go ahead until the second half of 2022.
But the publication noted that Foxtel will be poised to go through with the IPO when market conditions improve, already having had the require regulatory, legal framework and prospectus finalised for its launch.
The TV platform is hoping to raise $1billion when the IPO does eventually launch, The Australian reported, which The Sydney Morning Herald noted would potentially be by the end of the financial year.
Foxtel is the largest subscription television provider in Australia has more than four million subscribers, and in recent years shifted its focus launching a slew of streaming services – drama programming on Binge, sports on Kayo and global news on Flash – each with approximately one million subscribers who represent 56 per cent of the Foxtel Group’s total subscribers.
Since 2016, Foxtel has made several attempts to launch a public offering. According to the SMH, that initial plan would have seen News Corp retain it’s majority 51% share of the company, while Telstra would be whittled down to 20 per cent and new investors 30%.
Meanwhile, Foxtel Group chief executive Patrick Delany told The Australian that the public launch of an IPO was a matter for the company’s shareholders.
“Whether the owners (News Corp, publisher of The Australian, has a 65 per cent stake in Foxtel, with the remaining 35 per cent owned by Telstra) decide to offer part of it to the public, or whether we’re talking to debt markets about refinancing, or frankly, our own shareholders, we are building stable value.
“I think we can cope with whatever structure. It (a potential public listing) really is a matter for the shareholders,” he added.
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Top image: Foxtel Group chief executive Patrick Delany