21st Century Fox And Disney Stockholders Okay Acquisition By Disney

(RTTNews) - Twenty-First Century Fox, Inc. (FOXA, FOX) and The Walt Disney Company (DIS) said that, at separate special meetings today, stockholders of the two companies approved all proposals related to Disney's acquisition of 21st Century Fox. The proposals included the adoption by 21st Century Fox stockholders of the merger agreement with Disney and the distribution merger agreement for the spin-off of new "Fox."

Disney stockholders approved the issuance of new common stock that will be distributed to 21st Century Fox stockholders as part of the acquisition.

"Combining the 21CF businesses with Disney and establishing new 'Fox' will unlock significant value for our shareholders. We are grateful to our shareholders for approving this transaction," said Rupert Murdoch, Executive Chairman, 21st Century Fox.

"We're incredibly pleased that shareholders of both companies have granted approval for us to move forward, and are confident in our ability to create significant long-term value through this acquisition of Fox's premier assets," said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company.

As per the Disney Merger Agreement, 21st Century Fox stockholders may elect to receive $38 per share in either cash or shares of New Disney, a new holding company that will become the parent of both Disney and 21st Century Fox. The overall mix of consideration paid to 21st Century Fox stockholders will be approximately 50% cash and 50% stock. The stock consideration is subject to a collar, which will ensure that 21st Century Fox stockholders will receive consideration equal to $38 in value if the average Disney stock price at closing is between $93.53 and $114.32.

Disney expects to pay a total of about $35.7 billion in cash and issue approximately 343 million New Disney shares to 21st Century Fox stockholders. As a result, current 21st Century Fox stockholders will own a 17-20% stake in New Disney on a pro forma basis.

Last month, the U.S. Department of Justice entered into a consent decree with Disney and 21st Century Fox that allows the transaction to proceed, while requiring the sale of the Fox Sports Regional Networks. Completion of the transaction is subject to a number of non-U.S. merger and other regulatory reviews, and other customary closing conditions.