Fairfax Shareholders Urged Not To Be Too Hasty On Latest Takeover Bid

Fairfax Shareholders Urged Not To Be Too Hasty On Latest Takeover Bid
SHARE
THIS



What a difference a week makes! Fairfax looked ready to be sold for $2.2 billion last week, but a new valuation has the company valued at $3.5 billion and now shareholders are being urged not to sell until one of the two current bidders ups their offer.

Yesterday, global wealth firm Morgan Stanley valued the entire Fairfax business at just shy of $3.5 billion or a $1.50 a share.

The two potential bidders for the business, the US private equity firms TPG and Hellmen & Friedman have bid $2.7 billion and $2.9 billion respectively.

Fairfax-owned media sites have reported that the board has opened up its books for both bidders to conduct due diligence into the company’s financial affairs.

The company’s highly lucrative real estate site Domain seems to be creating all the new interest. There are plans to spin Domain into its very own company and analysts believe its value has been grossly underestimated by TPG and Hellmen & Friedman. There have been reports that Domain Co. going it alone sans the poor performers of the Fairfax family could be worth as much as $3 billion on its own.

According to today’s The Australian Financial Review, Morgan Stanley valued Fairfax at about $1.20 a share back in February. However, the possibility of Domain going it alone means the shares would be more likely worth $1.50 – valuing all of Fairfax at just shy of $3.5 billion or some $600 million more than the current offers on the table.

However, as the AFR is reporting, not everyone is as optimistic as Morgan Stanley’s assessment. Deutsche Bank valued Fairfax Media at no more than $1.05 a share, while CITI has said both the bids for the business represent good value.

It’s expected that both TPG and Hellmen & Friedman will likely up their offers for the business in the coming days.

Latest News

Kyle Sandilands and Jackie Henderson (Kyle & Jackie O) from KIIS at the 2015 ACRA Awards
  • Media

Kyle & Jackie O Crowned Best On-Air FM Team At Commercial Radio Awards

KIIS 1065 breakfast duo Kyle Sandilands and Jackie “O” Henderson have won the Best On-Air Team (Metro FM) category at the 30th Australian Commercial Radio Awards (ACRAs). Held on Saturday night at the Melbourne Exhibition and Convention Centre, and hosted by The Chaser’s Chris Taylor and Andrew Hansen, the ACRAs celebrated the best and brightest talent in […]

Digital Asset Management Solution Collaboro A Natural Fit With Open Data Initiative
  • Technology

Digital Asset Management Solution Collaboro A Natural Fit With Open Data Initiative

Digital asset management solution Collaboro claims its offering is a natural fit with Adobe’s, Microsoft’s and SAP’s new Open Data Initiative, as more organisations centralise their data on a single platform to improve their customer management and improve marketing performance.   According to Warwick Boulter (main photo), co-founder and CEO of Collaboro, a leading full-service solution for managing enterprise-level […]