TPG opting to increase Fairfax bid

FAIRFAX Media shares have hit their highest level in six years after a consortium led by US-based private equity giant TPG Capital upped its takeover bid by $500 million and widened it to now include the entire company.

TPG and its partner, Canada’s Ontario Teachers’ Pension Plan Board, have raised the bid for Fairfax Media to $2.76 billion, revising a previous partial proposal to make their offer an all-cash deal at a price of $1.20 per Fairfax share, for the entire media company.

Fairfax shares on Friday closed at $1.07 each, indicating a market value of $2.46 billion for the company.

Yesterday, shares closed 7¢, or 6.54 per cent higher, at $1.14.

TPG-OTTP had previously offered $2.2 billion for a major part of the company, including its Domain real estate classified business, the unit controlling flagship newspapers The Sydney Morning Herald and The Age, and its events and digital ventures businesses.

Under the proposal, the remaining businesses – including regional papers, New Zealand Publishing, Macquarie Media and the Stan streaming service – would be grouped under a new ASX-listed company called New Media Co.