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- Nine and Fairfax Announce $ 4 Billion Merger
- Merged Company Will Call Nine
- Nine Shareholders Will Own 51.1%
- Fairfax Shareholders Will Own 48.9%
In one of the largest media deals ever seen in Australia, Nine and Fairfax have announced plans for a $ 4 billion merger that will see the name "Fairfax" disappear from the national media landscape.
The merger will reduce costs for the broadcaster and the publisher, setting up a Nine shareholders will own 51.1% of the combined entity and nine executives, Hugh Marks, will lead the new company.
Fairfax shareholders will hold the remaining 48.9%. In a memo addressed to Fairfax staff today, the company's CEO, Greg Hywood, confirmed that the merged company will call it "Nine", although it also said that it would be a good idea. there would be "a lot of Fairfax Media's DNA in the merged company and board of directors.
SHAREHOLDERS INVITED TO RETURN MERGER
Fairfax directors will unanimously recommend that shareholders vote in favor of the proposal, under which they will receive 0, 3627 nine shares and 2.5 cents for each share. 19659007] This represents a premium of 21.9% over Fairfax's closing price of 77 cents on Wednesday, in general terms
"The Fairfax Board has carefully considered the proposed transaction and believes that it represents a value attractive to Fairfax shareholders Nick Falloon said in a statement to the ASX
"The Fairfax directors will unanimously recommend that Fairfax shareholders vote in favor of the plan in favor of the plan. absence of a superior proposal. "
Three current directors of Fairfax will be invited to join the board of directors of the combined company, which will be chaired by the chairman of the board of directors Mr. Peter Costello, and two current directors, Mr. Nine
"The combination of our activities has" Our employees are positioning us to offer new opportunities and innovations to our shareholders, including e staff and all Australians in the years to come, "said Mr. Costello
FAIRFAX: "WE HAVE MADE TO THE HONOR OF THE NON-STOP REVOLUTION"
In his statement to Fairfax staff, CEO Greg Hywood said that it was "as if" ; usual. "
"The combined operations will include Nine's free-to-air television network, Fairfax mastheads, a portfolio of high-growth digital businesses, including Domain, Stan and 9Now, and radio badets via Macquarie Media." .
"In the last eight years, Fairfax Media has gone from the relentless global media revolution to the best in its clbad."
The merger proposal was first launched last February. [19659026] media_camera
Last year, Fairfax Media announced a radical restructuring of its business with the aim of saving $ 30 million
Fairfax Media's after-tax net profit decreased by 9.9% to $ 76.3 million. The merger with Nine cancels earlier speculation on a potential takeover bid for TPG Capital, a US-based private equity firm.
Fairfax Chairman Nick Falloon commented, "The Fairfax Board of Directors has carefully reviewed the proposed Transaction and believes that it represents an undeniable value for Fairfax shareholders. Proposed transaction provides our shareholders with an excellent opportunity to maintain their exposure to Fairfax's growing businesses while participating in the benefits of combining with Nine. "
NEW: MERGER WILL ADD ANOTHER DIMENSION
Marks commented, "Nine's strong operational momentum has allowed us to invest in the future of our business through 9Now, Digital Publishing and of course, Stan.This merger with Fairfax will add another dimension, creating a unique media activity, all platforms, which will reach more than half of Australia every day on television, online, print and radio.
"For our audience and n Employees We will continue to be able to invest in high-end local content in the areas of news, sports, entertainment and lifestyle. For our partner agencies and advertisers, we will provide an expanded marketing platform with even greater advertising solutions, supported by a significantly improved data proposal. For our shareholders, the merged company will generate a growing percentage of its profits from high-growth digital businesses that offer a unique opportunity to generate value-added and cash flow in the future. "
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