Fairfax Media announced late last week that private equity firm Hellman & Friedman have submitted a proposal for the publisher, valuing it at up to $2.87 billion.
This latest bid now sees Hellman & Friedman compete against TPG Consortium for Fairfax. The company submitted a bid ranging from between $1.225 to $1.25 per share, compared with the TPG consortium proposal of $1.20.
TPG’s initial offer to acquire the media giant was at at 95 cents per share and included Fairfax’s real estate advertising arm Domain and its major mastheads, the Sydney Morning Herald, The Age and the Australian Financial Review.
Commenting on the Indicative Proposals, Fairfax’s Chairman Nick Falloon said:
“The Fairfax Board appreciates the support shareholders have demonstrated for Fairfax’s current strategy and the potential separation of the Domain Group. We have carefully considered the Indicative Proposals and believe it is in the best interests of shareholders to grant both parties due diligence to explore whether a potential whole of company proposal is available.”
Earlier this year Fairfax announced it will spin off Domain, retaining 60-70 per cent of the company. A company statement read: “during the due diligence period Fairfax intends to continue progressing the announced potential separation of Domain Group.”