TPG revises bid for Fairfax
Media group shares hit six year high on news of all-cash proposal.
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Fairfax New Zealand could be headed for private equity ownership after a consortium led by TPG Capital revised a bid proposal for its parent company Fairfax Media.
In a statement to the ASX this morning, Fairfax said TPG had made an indicative cash offer for 100% of the company at $A1.20 a share.
The proposal values Fairfax’s equity at about $A2.76 billion ($2.97 billion) and now includes assets, including Fairfax's New Zealand operation, which were left out of its original $A2.2 billion offer.
Shares in Fairfax Media rose 7% to $A1.147 on the news, their highest since May 2011, after earlier touching $A1.16.
TPG’s previous scheme, revealed last week, involved buying only selected parts of Fairfax (namely, the real estate site Domain, plus The Sydney Morning Herald, Melbourne Age and AFR) and leaving the remainder, including all debt, as a listed company.
Fairfax’s board said it was reviewing the new proposal while noting there was no certainty it would lead to a firm offer.
“Regardless of whether the revised indicative proposal proceeds to an offer for Fairfax, the Fairfax board believes Fairfax has an announced strategy for the future that will deliver value for shareholders,” it said.
Fairfax said it would proceed with existing plans to spin out Domain in the meantime.
The company’s shares last traded at $A1.07.
TPG’s revised proposal, backed by investors including Ontario Teachers Pension Plan Board, is subject to several conditions including exclusive bidder status and support from Fairfax’s board.
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TPG revises bid for Fairfax
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