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.

Please login with linkedin to comment

Latest News

Shell & HSBC Launch Global Agency Reviews
  • Advertising
  • Media

Shell & HSBC Launch Global Agency Reviews

Going with ‘new year, new me’ theme, Shell and HSBC are looking to freshen up their respective media businesses.

by B&T Magazine

B&T Magazine
Comexposium Takes Over NZ Partner MTS To Become Largest Trans-Tasman Events Group
  • Marketing

Comexposium Takes Over NZ Partner MTS To Become Largest Trans-Tasman Events Group

Marketing events group Comexposium has absorbed its New Zealand joint venture partner MTS to deliver an expanded event solutions business across the Trans-Tasman. The deal will see Ryf Quail (pictured above) return to Sydney to lead Comexposium Australian and Kiwi team, while his current MTS team remains in place as Comexposium employees. While the business […]

Eyeota Kick-Starts 2018 With $15.6 Million In Additional Funding
  • Marketing

Eyeota Kick-Starts 2018 With $15.6 Million In Additional Funding

Audience data provider Eyeota has announced a $15.6 million Series B capital raise to spearhead additional growth in 2018. The company was founded simultaneously in Singapore, Australia and Europe in 2010, and has remained independent and enjoyed strong growth locally, as well as launching into the US. Peter Hunter (pictured above), Eyeota’s general manager for […]

Poem Wins Four New Clients
  • Marketing

Poem Wins Four New Clients

Sydney-based PR and social agency Poem has announced it has won four new clients following another strong year of growth. The four clients are Property NSW (The Rocks and Darling Harbour), Fantastic Furniture, Ovolo Hotels and Purpose (a conference on purpose-driven business). Poem co-founder Matt Holmes said: “We’ve hit a nerve with clients who are […]

Facebook Makes Another News Feed Change
  • Media

Facebook Makes Another News Feed Change

Social media behemoth Facebook has announced its second major update for News Feed to make sure the news people see, while less overall, is high quality. This week, Facebook announced that the platform will launch a small test in the US focused on prioritising news from publishers that users find trustworthy. Facebook is also exploring ways […]

Attention! B&T’s Inaugural Bootcamp Launches!
  • Advertising
  • Marketing
  • Media
  • Technology

Attention! B&T’s Inaugural Bootcamp Launches!

B&T announces its new industry bootcamp! And, if you're like us & didn't know anything about it, all's revealed here.

by B&T Magazine

B&T Magazine
Domain Boss Antony Catalano Exits
  • Media

Domain Boss Antony Catalano Exits

Mystery surrounds Domain boss's surprise exit, although the Mystery Machine nor a talking dog not spotted at Fairfax.

PHOTOPLAY Offers A Ghost Train Ride Like No Other At Sydney Festival
  • Media

PHOTOPLAY Offers A Ghost Train Ride Like No Other At Sydney Festival

Jasmin Tarasin, director at boutique production company PHOTOPLAY, is inviting invites audiences to take a trip through the inner-workings of the mind in ‘Ghost Train’, her latest multi-sensory VR project set to feature at this year’s Sydney Festival. Working in collaboration with musician and co-creative director Jonnine Standish, Tarasin’s uniquely immersive ‘Ghost Train’ is a […]

March One To Rebrand Fundraising Institute Australia
  • Marketing

March One To Rebrand Fundraising Institute Australia

Independent advertising and branding agency March One has been appointed to oversee the rebrand and repositioning of Fundraising Institute Australia (FIA). FIA is the national peak body representing professional fundraising in Australia. It was established to advance advocacy and professional standards, and has identified the need to better promote its role as the industry self-regulator, […]

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency
  • Advertising
  • Campaigns
  • Technology

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency

As part of its summer fire campaign, the Victorian government has launched a virtual reality (VR) bushfire experience and content series via The Fuel Agency. The VR experience places the user in the midst of a large bushfire, and is designed to encourage people to leave early on high-risk days before it’s too late. The […]

Local Ad Tech Company VeNA Partners With RugbyPass
  • Advertising
  • Media
  • Technology

Local Ad Tech Company VeNA Partners With RugbyPass

ad tech company VeNA has signed an exclusive reseller partnership covering Australia and New Zealand with digital rugby network RugbyPass. Across Asia and parts of Europe, RugbyPass is the exclusive digital rights holder and over-the-top broadcaster for live rugby, including the Super Rugby, the Rugby Championship and autumn internationals, the Six Nations, the Aviva Premiership, […]