You are using an older browser version. Please use a supported version for the best MSN experience.

Fairfax Media buyout offer grows

NZ Newswire logoNZ Newswire 15/05/2017 Prashant Mehra

A consortium led by US-based private equity giant TPG Capital and Canada's Ontario Teachers' Pension Plan Board has raised its bid for Fairfax Media to $A2.76 billion ($NZ2.97b).

The consortium on Sunday revised its previous proposal, offering an all-cash deal at a price of $A1.20 per Fairfax share, for the entire media company, which owns publications and websites in Australia and New Zealand.

Fairfax shares on Friday closed at $A1.07 each, indicating a market value of $A2.46b for the company.

TPG-OTTP had previously offered $2.2b for a major part of the company, including its Domain real estate classified business, the unit controlling flagship newspapers The Sydney Morning Herald and The Age, and its events and digital ventures businesses.

Under the proposal, the remaining businesses - including regional newspapers, New Zealand Publishing, Macquarie Media and the Stan streaming service - would be grouped under a new ASX-listed company called New Media Co, which would also take on 100 per cent of Fairfax's current net debt.

Fairfax's board had been tipped to reject the offer after it indicated the proposal may not be good value for shareholders and may be too complex to carry out anyway.

On Monday, the company said its board is reviewing the new proposal and will update shareholders when it has been fully assessed.

The revised takeover bid will be subject to a due diligence, shareholder approval at a Fairfax scheme meeting, and regulatory approvals, including from the Australian Foreign Investment Review Board (FIRB) and New Zealand Overseas Investment Office (OIO).

image beaconimage beaconimage beacon