European pay-TV group Sky said on Friday it had received a takeover approach from Rupert Murdoch’s Twenty-First Century Fox, the company’s largest shareholder.
Sky’s shares were up 26% at 10 pounds in late trading in London, while Fox’s shares were up 4.3%.
Fox’s offer of 10.75 pounds per share in cash, is a 36.2% premium to Sky’s Thursday close, and values the company at about 18.48 billion pounds ($23.23 billion).
Fox (FOX) already owns 39.1% of Sky, according to Thomson Reuters data.
According to Reuters calculations, Fox will pay 11.25 billion pounds for what it doesn’t already own of Sky.
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Fox Chief Executive James Murdoch was named chairman of Sky this year, fueling speculation that the U.S. media company would make a bid.
Sky, which has formed an independent committee to consider terms of the proposal, said discussions were continuing.