Fairfax Media today announced that its shareholders have supported a $ 25 billion offer from Nine Entertainment, paving the way for Australia's largest media company.
"I am pleased to report that the proposed merger of Fairfax and Nine has received overwhelming shareholder support and, subject to court approval, we expect the application to take place on December 7, 2018," Fairfax Chairman Nick Fallon told shareholders at the annual meeting.
The shareholders voted in favor of the acquisition by nine after a recent attempt by Antony Catalano, a former manager of Domaine, Fairfax, to publish the real estate division, to disrupt the proposed merger On Sunday night he offered a rival offer to Fairfax, 19.9% of Fairfax, will dispose of non-core assets and restore cash to the shareholders.
Fairfax's board of directors rejected Mr. Catalano's offer and said it did not exceed Nain's offer.
Fairfax shares rose 2.4 percent to $ 0.63 and 9 shares added 2.5 percent to $ 1.67 on Monday.
The cash-stock deal – about 97% of the offer was valued at the nine-share price at the time of the transaction – means the disappearance of Fairfax, a synonym for quality journalism and headlines such as the Sydney Morning Herald and Melbourne. Nine Fairfax focuses on its gamble in rapidly growing digital businesses, such as Stan, a streaming service that competes with Netflix, and with Domain, not with its newspaper assets, analysts said.
Fairfax holds 60% of the shares of Domin, which is traded on the ASX Stock Exchange with a market cap of $ 1.45 billion.