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

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news