Fairfax rejects Singo’s radio offer

Chinese tie-up sends Bubs soaring

SHARES in Bubs Australia have surged after the baby food maker signed a deal with Chinese online sales portal Kaola.com.

Bubs’ infant formula and organic baby products, which are available for sale on the e-commerce platform, will be accessible to Kaola’s 15 millionstrong customer base under the agreement.

Bubs shares climbed more than 20 per cent to close at 17.5¢. Kaola is owned by Nasdaq-listed Chinese internet group NetEase, which claims 800 million users across online services ranging from gaming to e-commerce.

NetEase expanded into ecommerce in 2015, launching Kaola.com, which operates on a similar basis to Amazon.com. Baby food maker Bubs is the latest in a string of companies working to meet growing Chinese demand for infant formula.

In May, A2 Milk said revenue had jumped 49 per cent to $NZ388 million ($357.5 million) in the nine months to March on the back of strongerthan-expected infant formula sales in China and Australia. FAIRFAX Media has rebuffed an approach from a consortium including advertising entrepreneur John Singleton for its 54.5 per cent stake in Macquarie Media.

Fairfax, which itself is subject to rival takeover bids, yesterday confirmed Mr Singleton and long-time adviser Mark Carnegie were part of a consortium wanting to buy the radio broadcaster. Fairfax made a statement to the ASX that included a letter from the consortium, which said it was responding to media reports that Fairfax was considering the sale of its shares in the 2GB network owner.

“Contrary to the suggestions in the letter, Fairfax is not seeking offers or undertaking a process to realise its investment in Macquarie Fairfax said.

Fairfax said any potential offer or request for due diligence on Macquarie Media would be a matter for the ASXlisted broadcaster to consider.

John Singleton Promotions is listed as the second largest shareholder in Macquarie Media with a 32.37 per cent stake. Media,”