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TPG Capital Considers Fairfax Takeover

TPG Capital Considers Fairfax Takeover

Fairfax Media could be set for a takeover as early as this week as private equity firm TPG Capital reportedly buys millions of shares in the media company.

According to a report by The Australian Financial Review, over 35 million shares changed hands on Monday and Tuesday this week, potentially giving TPG Capital up to a 4.9% stake in Fairfax.

Neither TPG Capital or Fairfax have commented on the report. By keeping its stake below 5%, TPG Capital avoids requirements for regulator approval of foreign media investments as well as public disclosure.

Property site Domain currently makes up the majority of Fairfax’s $2.5 billion market capitalisation, with the company announcing its intention to list Domain separately last month. Fairfax would still retain up to 70% ownership of Domain in its plan, with analysts expecting the value of the property site to grow as high as $3 billion in the future.

Fairfax other assets, including newspapers like The Australian Financial Review, The Sydney Morning Herald, and The Age, are given minimal value on the market.

The Australian reported last week that TPG Capital was encouraging other private equity firms to buy Fairfax’s regional business of “over 160 local newspapers and community-based websites” under its Australian Community Media portfolio.

Fairfax shares were up as high as 7.5% following the report.

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