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UPDATE 1-Australia's Fairfax Media gets approval to vote on Domain separation

Published 22/09/2017, 03:14 pm
UPDATE 1-Australia's Fairfax Media gets approval to vote on Domain separation
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(Adds background on Domain spin-off, share move)

Sept 22 (Reuters) - Fairfax Media FXJ.AX on Friday said it received approval by an Australian court to hold a shareholders meeting to vote on the separation and listing of its classified ads business for properties, Domain Holdings Australia Ltd.

If the separation is approved in the Nov. 2 meeting, shareholders would receive one Domain share for every 10 Fairfax shares held, the company said in a statement.

Australian media companies have been under pressure as customers seek content more cheaply online and advertisers focus their spending on internet giants like Facebook FB.O , Google GOOGL.O and Netflix NFLX.O .

Domain, however, has benefited from a property boom in Sydney and Melbourne.

A standalone Domain listing could compete more directly with REA Group Ltd REA.AX , a property classifieds business two-thirds owned by News Corp NWSA.O .

Fairfax has ramped up efforts to break out its Domain business, the biggest contributor to company revenues, after U.S. private equity firms TPG Capital Management TPG.UL and Hellman & Friedman abandoned moves to acquire the company. shares were steady after the announcement.

Fairfax in August said it would retain 60 per cent of a separately listed Domain.

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