Nine buys Fairfax for $1.6 billion, creates Australia's biggest media firm
The deal marks the end of an era for the 177-year-old publisher of the Sydney Morning Herald and Australian Financial Review, which will give up the name of founder John Fairfax under the arrangement with the free-to-air broadcaster.
It would make Nine the biggest media company in the country, ahead of News Corp’s (NWSA.O) Australian arm, although some shareholders were not impressed and the company’s stock fell 10 percent to an eight-week low after the announcement.
Under the Proposed Transaction, Fairfax shareholders will receive consideration comprising: 0.3627 Nine shares for each Fairfax share held (Scrip Consideration) and $0.025 cash consideration per Fairfax Share (Cash Consideration) together, Aggregate Consideration.
The Aggregate Consideration implies a: 21.9% premium to Fairfax’s closing price on 25 July 2018 of $0.770 and 22.6% premium to Fairfax’s one month VWAP to 25 July 2018 of $0.766. ■