You cant tell me that there aren’t opportunities to streamline a merged operation
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Citi is casting doubt on whether the Nine-Fairfax merger can proceed as announced after the share price of Nine fell meaning there is now no premium for Fairfax shareholders.
Edit: Nine has stated they are committed to the merger, so the terms may have to be revised.
Source: The Australian
Hugh Marks yesterday bought 54,884 shares in Nine at $1.82 for a total price of $513,749.60 $99,888.88. Is Marks getting in while the price is low to grab more of Nine, or he is trying to not let the share price fall any lower, I wonder.
Edited to correct calculation. Thanks for picking up @PointJules
I’m sorry, I might be missing something here. What’s the math on that purchase?
Yeah, sorry, my calculator somehow got that wrong. Should be $99,888.88
Logos of Fairfax’s various businesses featured prominently during Nine’s upfront presentation yesterday.
Fairfax shareholders will vote on the merger with Nine just before the company’s AGM on Monday 19th November.
Source: https://www.radioinfo.com.au/news/fairfax-sharholders-will-decide-nine-merger-november
https://twitter.com/acccgovau/status/1060303634330607616
This appears to be the key line from the decision:
Of course they were never going to oppose the merger.
In other news, the sky the blue, water is wet and the grass is supposed to be green (we are in drought after all).
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There would have been a fire sale either way - fairfax’s regional papers will be the victim
Nine Welcomes the Decision by the ACCC to Not Oppose the Proposed Merger of Nine and Fairfax
Nine Entertainment Co. Holdings Limited (Nine) (ASX:NEC) today welcomed the decision by the Australian Competition and Consumer Commission (ACCC) to not oppose the proposed merger of Nine and Fairfax, via a Scheme of Arrangement (Scheme).
The implementation of the Scheme remains subject to the approval of Fairfax shareholders (at the meeting scheduled for 19 November 2018), final court approval (27 November 2018) and the satisfaction, or where applicable waiver, of certain other conditions as outlined in the Scheme Implementation Agreement lodged with the ASX on 26 July 2018. If all conditions are satisfied or waived, implementation is scheduled for 7 December 2018.
The Directors of Fairfax unanimously recommend that Fairfax shareholders vote in favour of the Scheme, in the absence of a superior proposal. Each Fairfax Director intends to vote in favour of the Scheme, in relation to the Fairfax shares held or controlled by him or her. The Independent Expert, Grant Samuel, as detailed in the Scheme booklet, has concluded that the Scheme is in the best interests of Fairfax Shareholders, in the absence of a superior proposal.
Nine CEO Hugh Marks told Mumbrella:
It is clear to us the ACCC were thorough in their considerations of the many submissions they received and we welcome this rigorous process, as this is first merger to take advantage of the government’s media law reforms. It is a clear acknowledgement of the changing competitive landscape in our industry, where the ability to compete across a variety of platforms and to engage different audiences is key.
Our focus is now on securing the support of Fairfax shareholders on November 19.
It would be surprising, I think, if Nine didn’t take the opportunity to move the former Fairfax operations in Sydney into their future new headquarters in North Sydney. 1 Denison Street has not been fully leased with multiple floors still available.
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That’s not a bad idea, as Fairfax is vacating its premises at Pyrmont to make way for Google.
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Stokes/Seven Group has been desperate to get out of Seven West for the past couple of years, if the rumours are to be believed. Stokes wants a deal so it is odd he has had a dig at Nine for doing what he has yet to achieve.
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Antony Catalano the former boss of Domain attempts to derail the Nine takeover of Fairfax at the last minute.
A bit late…like rearranging the deck chairs on the Titanic.
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