Fairfax Media has received another buyout proposal from a private equity firm, at a higher price than that currently offered by TPG.
Fairfax has cleared the way for due diligence to begin on both bids, another step in making the sale of the company an increasingly likely possibility.
The AFR reports:
From global private equity firm Hellman & Friedman, the bid is for a range of $1.225 to $1.25 per share, compared with the TPG consortium proposal of $1.20.
The board has considered both indicative proposals and will invite both the TPG consortium and Hellman & Friedman to conduct due diligence in order to establish if an acceptable binding transaction can be agreed.
“The Fairfax Board appreciates the support shareholders have demonstrated for Fairfax’s current strategy and the potential separation of the Domain Group,” Fairfax chairman Nick Falloon said.
After an initial proposal to buy real estate business Domain and Fairfax’s metro publishing divisions plus some other assets, TPG last week revised up its bid to make an offer for the whole company.
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