More Details Of TPG’s Offer For Fairfax Media Emerge

More Details Of TPG’s Offer For Fairfax Media Emerge

It was the hottest rumour over the weekend, and speculation of private equity firm TPG’s offer for Fairfax Media appear to be getting stronger.

As reported on B&T over the weekend, the US company had apparently offered Fairfax upwards of $2.5 billion for its major mastheads and its highly profitable real estate site Domain. Apparently, it wasn’t interested in the company’s New Zealand operations, its stake in Macquarie Media Radio or the SVOD JV Stan.

A report in today’s Fairfax Media has suggested if the deal were to go ahead, the parts of the business TPG did want would form a separate company to be called “Domain Co”. The unwanted parts would apparently remain under the Fairfax name.

It is understood Fairfax bosses met over the weekend to consider the TPG offer that includes offering 95 cents per share to create Domain Co.

In a statement to the ASX this morning, Fairfax said the consortium included the Ontario Teachers Pension Plan alongside TPG.

The Fairfax article noted, “the conditions include due diligence, shareholder approval and the nod from the Foreign Investment Review Board”.

In a statement, Fairfax said: “The Fairfax board notes that there is no certainty that the indicative proposal is capable of being implemented given the complexity involved in splitting the businesses. This proposed split may not optimise shareholder value.”

Other conditions included: Domain making a pre-tax profit of $115 million, its mastheads making a combined pre-tax profit of $34 million, that the consortium buys Domain Co free of both cash and debt; and that it has the full support of the board.

Coincidentally, Fairfax journalists are presently striking for seven days following plans announced last week that would cut 125 editorial staff and trim $30 million from annual costs.




Please login with linkedin to comment

Advertising Standards Bureau Interior vavavoom

Latest News

Sydney Comedy Festival: Taking The City & Social Media By Storm
  • Media

Sydney Comedy Festival: Taking The City & Social Media By Storm

Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]

Global Marketers Descend For AANA’s RESET For Growth
  • Advertising

Global Marketers Descend For AANA’s RESET For Growth

The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA  Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]