Australia’s Fairfax Media gets revised $2b offer from TPG-led group

A screenshot of Sydney Morning Herald, one of the papers by Fairfax Media

Australian newspaper publisher Fairfax Media Ltd on Monday said it has received a revised A$2.76 billion ($2.04 billion) cash offer led by U.S. private equity firm TPG Capital Management for all of the company.

The offer from TPG and the Ontario Teachers’ Pension Plan Board (OTPP) values Fairfax at A$1.20 a share, and compares with a previous proposal to buy the company’s top mastheads, including The Sydney Morning Herald and The Australian Financial Review, and its property listings unit Domain for A$0.95 a share.

That would have left investors with scrip exposure to the publisher’s radio division, regional and New Zealand titles, a stake in an online television streaming start-up and its debt. The TPG consortium valued those assets at A$0.25 to A$0.30 a share, but Evans & Partners analysts said that was “optimistic”.

The latest offer represents a 12 percent premium to Fairfax‘s A$1.07 closing price on Friday.

The media group said it was reviewing the indicative proposal from TPG and OTPP, which is subject to conditions including due diligence access, a shareholder vote and foreign investment approvals.

Fairfax shareholders do not need to take any action in response to the revised indicative proposal and the Fairfax board will update shareholders when it has been fully assessed,” the company said.

If accepted, the offer would end Fairfax‘s much anticipated plan to unlock shareholder value by spinning off its lucrative property listings unit, Domain, the most valuable part of the business after a collapse of earnings at news mastheads.

A TPG spokesman was not available for immediate comment.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.