Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fairfax faces siege in 2013 as Rinehart, Singleton team up

Fairfax faces siege in 2013 as Rinehart allies with Singleton to renew assault

Dec. 31 (BusinessDesk) - Fairfax Media Group will face another raid by shareholder and iron ore magnate Gina Rinehart after she teamed with Macquarie Radio Network's John Singleton to exert control over the publisher of the Dominion Post, Sydney Morning Herald and Australian Financial Review.

Rinehart's Hancock Prospecting and Singleton's Gutenberg Investments have pooled their Fairfax shareholding to hold 15.4 percent voting power, according to a statement lodged with the ASX. The agreement aims to enhance shareholder value in Fairfax and will see the parties consult on key matters affecting the stock, the document said.

The end-goal emerges in the terms for automatic termination, which include whether the parties, either together or alone, "come into a position to exercise control of FXJ (Fairfax) or the commercial radio broadcasting licences controlled by FXJ for the purposes of the BSA (Broadcasting Services Act)."

The deal is Rinehart's second attempt to gain greater control after she built up a 19 percent stake earlier this year and missed out on obtaining a seat at the media group's board despite being the biggest shareholder. Singleton's Macquarie Radio Network unsuccessfully tried to buy Fairfax's stations in 2011.

Fairfax has a market capitalisation of A$1.12 billion on the ASX, almost half the A$2.21 billion enterprise value put on it, and some analysts speculate Rinehart and her supporters will pursue asset sales if they gain control.

This month, Fairfax sold its remaining stake in online auction site Trade Me for A$616 million cash which it used to pay down debt and buy technology investment firm Netus.

The media group took a A$2.8 billion impairment on its goodwill and mastheads in the 2012 financial year as it reassessed the value of its traditional media assets and attempts to reform itself into a nimble, digital-based company.

Fairfax shares jumped 4.2 percent to 49.5 Australian cents on the ASX, having shed 34 percent this year. The stock is rated an average 'hold' based on 13 analyst recommendations compiled by Reuters, with a median target price of 50 Australian cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news