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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news