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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news