Photo ABC.
The Harden Express and a long list of country newspapers could be ready for the cutting room floor after Fairfax Media Shareholders voted overwhelmingly to merge with Nine Entertainment on Monday.
The Daily Telegraph reported that Fairfax chairman Nick Falloon spoke at the scheme meeting this morning, dismissing the last minute attempt by former Domain chief Antony Catalano to derail the merger late last night. Mr Catalano sent a letter to the Fairfax board at 8pm, attempting to buy 19.9 per cent of the media company’s shares.
A total of 81.49 per cent of shareholders voted in favour of the deal and 18.3 per cent against.
The $4 billion merger, which has already been approved by the competition watchdog, now faces final court approval on November 27.
Fairfax Media chairman Nick Falloon said the combination is expected to complete on December 7.
“The proposed merger of Fairfax and Nine has received overwhelming support from shareholders,” Mr Falloon told the meeting, which immediately followed the vote.
The shareholder vote for the merger means Australia will have four major media players instead of five, with Nine Entertainment adding newspapers such as The Age, The Australian Financial Review and Sydney Morning Herald to its free-to-air TV network.
Fairfax directors unanimously recommended that shareholders vote in favour of the deal, which also gives the new business Fairfax’s majority stake in Domain, streaming service Stan, and a 54.5 per cent stake in the Macquarie Media radio network.
When the Nine-Fairfax deal was announced, the arrangement implied a 22 per cent premium to Fairfax’s share price (a takeover price of 84¢ with a combined value of both companies at $4.2 billion).
Opposition leader Bill Shorten and former Prime Minister Paul Keating are among those sceptical, while the Media, Entertainmentand Arts Alliance say the merger will reduce coverage of matters of public national interest.
Fairfax Media took over Rural Press in 2006 in what was touted as a combined company with assets worth more than $9 billion.
During that time Rural Press shares were up more than 15 per cent to $13.59 while Fairfax shares dropped 19 cents to $5.02 as the markets deflated.
The takeover created Australasia’s largest integrated metropolitan, regional and rural print and digital media business.
Just 12 years later and 6 days ago the Fairfax Share price his a 52 week low of 58.5 cents
The newly formed Nine is expected to be trading shares on a normal settlement basis on December 10.
Earlier in the year discussion revolved around around larger mastheads such as Newcastle and Launceston closing, signaling a bleak outlook for country papers in rural areas.
