Fairfax shares hit five year high as takeover speculation grows
Share in Fairfax Media have today hit their highest point in more than five years as speculation continues to grow that private equity company TPG Capital is poised to launch a takeover bid.
The valuation of the company – listed on the ASX as FXJ – has risen by 17% in the last month and by about 10% in the last week alone.
Earlier today the FXJ share price topped $1.10 for the first time since May 2011, giving it a market capitalisation of $2.5bn.
Fairfax’s growing share price since 2012 | Source: Google Finance
On Monday’s Fairfax’s business newspaper the Australian Financial Review predicted that TPG could launch a bid “as early as this week“. The AFR today reported that TPG had begun buying shares in the company.
If a takeover bid gets underway, it would be as an alternative move to Fairfax’s own plans to float its realestate site Domain as a separate listing on the ASX in an attempt to unlock greater value. By contrast, the News Corp- aligned REA Group, which is separately listed, has a market capitalisation of $7.85bn
Fairfax’s non-growth media assets include the Sydney Morning Herald, The Age and regional newspapers. Fairfax also owns stakes in streaming service Stan and talk radio company Macquarie Media.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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Your honour, I offer ExhibitA: this yarn has run exclusively in the AFR. ExhibitB: AFR articles quote Alex Waislitz. ExhibitC: Alex Waislitz is both a mate of Domain’s Catalano (on which note AFR Aston on Catalano birthday party) and a substantial Fairfax shareholder. ExhibitD: Waislitz has been reported frequently in AFR in backing both Catalano’s management and a float of Domain. ExhibitE: Fairfax, having previously admitted that Domain could not be reported as a separate business has now proposed a (partial) “float”. ExhibitF: Since the reports of TPG “bidding” Fairfax stock price has risen.
Your honour is invited to consider the possibilities.
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Nothing stimulates share price growth like being an acquisition target!
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Your honour: a perfect cycle. ExhibitG: AFR reports that Stan is a key asset in TPG interest in Fairfax. ExhibitH: AFR reports that TPG interest waned – when Fairfax reacted to its “bid” by announcing the Domain “float”.
Your Honour: surely some mistake here????
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A job for Fairfax’s Adele Ferguson: the mysterious appearance of a full bid for Fairfax warms up big time, reported as fact by AFR. Then all of a sudden is declared dead, due to something or other. Big share price shift. What gives? Looks very much like it was not ever for real????
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