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Fairfax shareholders agree to spin off Domain

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Source: Financial Review

Fairfax announced on Thursday that its shareholders have overwhelmingly agreed on the plan to spin off property business Domain into a standalone company.

Fairfax will retain a 60 percent share of the business after Domain lists and Nick Falloon will serve as chairman of both companies.

The media giant says it will give shareholders one Domain share, for every 10 Fairfax shares that the shareholders own.

Fairfax also announced that Domain is expected to start trading on the Australian Securities Exchange (ASX) on November 16.

Fairfax’s share price rose 15 cents to $1.10 in the month leading up to the shareholder decision, but dropped to $1.08 on Thursday. On Friday morning it hit $1.12 and then dipped back to $1.10 by lunchtime.

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Fairfax posted a net profit of $83.9 million for the 2017 Financial Year. A marked improvement over the $772.6 million loss seen in the 2016 Financial Year.

Revenue fell in the newspaper and radio businesses, but Domain’s rose by 8.1%.

In July, U.S private equity firms TPG and Hellman & Friedman, both passed on the chance to buy Fairfax.

At the time, Fairfax CEO said that both bids were unsolicited and that it would be back to “business as usual.”

Source: Reuters/ The ASX

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