21st Century Fox Inc. will pursue a so-called scheme of arrangement route to ensure a smooth takeover of nearly 61% of Sky plc stake that the Rupert Murdoch-controlled company does not already own, Financial Times (London) reported Dec. 13.
Buyers use scheme of arrangement model for a quick takeover as they are only required to win backing of 75% of the target company's independent shareholders under this model. Under the scheme, Fox must gain approval of 75% of the non-Fox shareholders, following which the remaining independent shareholders will be forced to sell their stake in the company.
Fox will need approval from the U.K. High Court to carry out the transaction model. Fox and Sky reportedly are expected to finalize a formal deal sometime in the week of Dec. 12, following which they will move the court seeking approval of the scheme of arrangement.