Amstrad sold to Sky for £125million

Sir Alan unloads Amstrad

July 31, 2007


SIR Alan Sugar today agreed to sell his Amstrad business in a
£125million deal with broadcaster BSkyB.

The Amstrad chief executive and chairman, who is majority shareholder
at the set-top box maker, said he could not "imagine a better home"
for the business.

Amstrad and BSkyB already have a close relationship as Sir Alan's firm
supplied around 30 per cent of the set-top boxes purchased by Sky in
the year to June 30.

The proposal still requires the approval of the company's remaining
shareholders.

Founded by Sir Alan Sugar in 1968 as an electrical goods trader, the
company has focused on supplying technology accessible to the mass
market.

Listed on the London Stock Exchange in 1980, Amstrad launched the
first mass market home computer package in the mid-1980s and was the
founder supplier to Sky TV when the service launched in 1988.

More recently, Amstrad launched the E3 videophone, following on from
the E-mailer, which allowed email, internet, pictures and video
calls.

The acquisition of Amstrad will provide Sky with an in-house design
and development capability, allowing it to source some of its products
directly from specialist electronics manufacturers.

BSkyB chief executive James Murdoch said: "Sky and Amstrad have had a
long and positive relationship. The acquisition accelerates supply
chain improvement and will help us to drive innovation and efficiency
for the benefit of our customers."

Sky said its offer for Amstrad so far had the support of shareholders
with 44.8 per cent of the company, including the 27.9 per cent held by
Amshold, a business controlled by Sir Alan.

The offer price of 150p a share values the company at £125million and
is at a premium of 23.7 per cent to last night's closing price.

Oh how often have I seen such mergers going on about perfect partners and
synogie etc. At some point SKY will decide that having competing suppliers
has price benefits and Amstrad will be sold off.

On 31 Jul, 11:20, "John Russell" wrote:
Oh how often have I seen such mergers going on about perfect partners and
synogie etc. At some point SKY will decide that having competing suppliers
has price benefits and Amstrad will be sold off.

To tell you the turth, I was thinking same..., it's like Orange buying
a phone manufacturer.

Good luck!

"T" wrote in message
oups.com...
On 31 Jul, 11:20, "John Russell" wrote:
Oh how often have I seen such mergers going on about perfect partners and
synogie etc. At some point SKY will decide that having competing
suppliers
has price benefits and Amstrad will be sold off.

To tell you the turth, I was thinking same..., it's like Orange buying
a phone manufacturer.


Not really as they are the sole customer for the sky+ box. More like a
petrol company buying an oil field.

"T" wrote in message
oups.com...
On 31 Jul, 11:20, "John Russell" wrote:
Oh how often have I seen such mergers going on about perfect partners and
synogie etc. At some point SKY will decide that having competing
suppliers
has price benefits and Amstrad will be sold off.

To tell you the turth, I was thinking same..., it's like Orange buying
a phone manufacturer.

Good luck!

Hands up all those who want an Amstrad HD box?

On Tue, 31 Jul 2007 16:16:29 +0100, "John Russell"
wrote:

Hands up all those who want an Amstrad HD box?

What, like this one?

http://www.amstrad.co.uk/products/digisat/drx700i.html
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