Monday, 8 May 2017

Private equity bids $2.5bn for Sydney Morning Herald owner

The owner of Australian newspapers including the Sydney Morning Herald is in takeover talks with a North American private equity consortium.

TPG Capital and the Ontario Teachers' Pension Plan want to buy parts of Fairfax Media including its newspapers and property advertising arm, Domain.

A deal could be worth as much as A$2.5bn (£1.4bn).

However, loss-making Fairfax said the offer "may not optimise shareholder value".

It also said the proposal may not get off the ground "given the complexity involved in splitting the businesses".
A deal would also need approval from the federal government's Foreign Investment Review Board.

Fairfax, which also publishes The Age and the Australian Financial Review, posted a loss of A$893m last year as it struggled with plunging print advertising revenue and newspaper sales.

SMH strikers

Last week journalists at the Sydney Morning Herald and The Age in Melbourne went on strike for a week in protest after management announced more job cuts.

However, the Domain division, which accounts for half of Fairfax's profits, is growing strongly and the company wants to spin it off and retain a majority stake.

BBC      News.