Fairfax Media To Spin Off Domain As A Separately Listed Entity


A request issued to the ASX revealed that “in accordance with Listing Rule 17.1, Fairfax Media Limited [ASX: FXJ] requests that its securities be placed into an immediate trading halt pending an announcement in relation to the Domain Group.”

Re-interpreted, it seems that Fairfax Media plans to 'spin off' Domain as a separately listed entity on the Australian Securities Exchange with the publishing company entering into a trading halt.

According to The Australian Financial Review, Fairfax declined to comment but sources said there was a view among key Fairfax decision makers that "the time was right" to enact the long-speculated spin off plans. Media industry consolidation is firmly on the radar for 2017 regardless of whether there is a change in ownership laws.

Fairfax is understood to be targeting a deal for Domain before the end of the year.

The AFR said analysts expect Domain to be worth about $2 billion as a separately listed entity, having grown to earn about $130 million a year for the publishing company.

Fairfax could report $139 million in earnings before interest, tax, depreciation and amortisation for the six-months to December 31, with Domain accounting for almost half or $65 million.

Fairfax chief executive Greg Hywood will reportedly front the market with his company's half-year numbers this week.

The AFR suggested that Fairfax would retain between 60-70 per cent ownership of the separate company and Domain's current chief executive Antony Catalano would continue to run the company.

According to the ABC,  reports suggest a separation could be completed by the end of the calendar year, with the standalone real estate firm valued around as much, or more, than its parent's total market capitalisation of $2 billion.

Fairfax has asked for a trading halt until Thursday, or when it makes an announcement to the market, whichever occurs first.

With the company due to report its first-half profits tomorrow morning, it is widely expected the announcement about Domain's future will be made then.

Show Comments
advertise with us
The Urban Developer is Australia’s largest, most engaged and fastest growing community of property developers and urban development professionals. Connect your business with business and reach out to our partnerships team today.
Article originally posted at: