Fairfax puts shares in trading halt

Fairfax Media shares have been placed in a trading halt on the Australian stock exchange until tomorrow morning, pending an announcement about its Australian online real estate classifieds business, Domain.

Chief executive Greg Hywood is expected to release more details today when the company delivers its half-year results.

The shares last traded at A87 cents, the lowest price since January 31 this year.

Rumours surfaced in The Australian Financial Review yesterday that Fairfax’s Australian arm is being advised by Macquarie Capital on how to separate Domain from the rest of the company.

Potentially Fairfax could list Domain as a separate entity on the Australian sharemarket, but retain a majority stake in the company. This is a similar arrangement to News Corp, which retains about 60 per cent of REA Group, which operates realestate.com.au.

Major shareholders have been asking management to sell Domain, which they believe could be worth billions.

Last year Domain delivered nearly 50 per cent of Fairfax’s earnings – A$120 million (NZ$128 million) out of A$283m.

It is a fast-growing division within the media company, which also owns metropolitan and regional newspapers, and runs events. –Sydney Morning Herald