Fairfax Media Limited

FXJ Details

Following the recent receipt of separate indicative and non-binding proposals from both the TPG Consortium and Hellman & Friedman, the FXJ’s Board determined that it was in the best interests of shareholders to grant both parties access to confidential due diligence to explore whether a whole of company proposal, at a price and on terms that the Board would recommend.However, there was no certainty that either indicative proposal would result in such an offer and following the conclusion of this process and Fairfax did not receive a binding offer from either the TPG Consortium or Hellman & Friedman. Accordingly, the Fairfax Board has ceased discussions with both parties.

The business continues to perform on track with previous updates provided, with Domain’s digital performance accelerating in the last quarter. Further, overall group revenues are expected to be around 6% below last year for FY17 H2 (26 December 2016 to 25 June 2017), while anticipating EBITDA of between $262m and $266m for the year ended June 2017. The company will report full year results on 16 August 2017. The stock has moved up 23.6% (as of June 03 17) in the last six months, led by recent rally on account of takeover bids. We give a “Hold” recommendation on the stock at the current price of $0.98
 

FXJ Daily chart; Source: (Thomson Reuters)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.