Fairfax shareholders vote in favour of Nine takeover
Media deal moves a step closer to Nine owning Fairfax, despite last minute attempts to derail it.
- Published by David Knox
- on
- Filed under News
Fairfax Media shareholders have voted in favour of Nine’s proposed takeover of the publishing company, which includes The Sydney Morning Herald, The Age, Domain and a majority share in Macquarie Media.
81.49% of shareholders approved plans for the two companies to merge despite a last minute attempt by former Domain chief executive Antony Catalano to stop the deal proceeding.
The vote comes two weeks after the Australian Competition and Consumer Commission said it would not object the merger. At the time, the ACCC said the deal would not significantly lessen competition in terms of advertising opportunities, or the creation and provision of news and non-news content.
Proxies voted 94.2% for the scheme arrangement, representing 66% of shareholders.
“Nine welcomes the result of the Fairfax Scheme vote as an endorsement of the opportunities this merger presents for both companies’ shareholders, our collective staff and for our clients and partners. We are now working very hard to realise the cost synergies and explore revenue opportunities that will enable us to continue to invest in great Australian content and journalism.”
Nine CEO Hugh Marks said, “This is great news and a sign of confidence in the opportunities this merger presents. The next important date is Tuesday, November 27 when the Federal Court will make a final decision on the merger.”
If the court approves the proposal, the first day of operation is expected to be December 10.
Under the proposed deal, Nine will acquire a 51.1% stake in Fairfax Media, with the Fairfax Media brand to be absorbed. Outside of the print mastheads Fairfax Media is known for, and the broadcasting arm of Nine, the combined entity will own businesses such as Stan, Domain, Pedestrian and CarAdvice. It will also have a majority share of Macquarie Media.
Fairfax Media would cease to trade on the ASX after nearly 180 years as a publishing company.
There are reports WIN Corporation owner Bruce Gordon is also expected to move quickly to become the largest shareholder in the merged company.
3 Responses
More 9dots to see
Nine owns Pedestrian? What an odd pairing.
I guess with the changing landscape of free to air television, and it being harder to get those big rating shares with all the streaming and other avenues of viewing, this is probably a clever move.