Shares in Fairfax rose by more than 10% in morning trade following this morning’s merger announcement with Nine Entertainment.
A short time ago, shares in the media group were up by almost 12%, after coming out of an early trading halt while executives from both companies held a conference call.
Under the Scheme of Implementation agreement announced this morning, Fairfax shareholders will get 0.3627 Nine shares for each Fairfax share and $0.025 cash.
The combined offer implies a 21.9% premium to Fairfax’s closing price yesterday of $0.77.
Online property classifieds business Domain Holdings is also up by more than 8% in morning trade. Domain was spun off by Fairfax last year and commenced trading as a separate listed entity in November.
Conversely, shares in Nine — which will assume 51.1% control once the proposed merger is complete — fell by more than 5%.
During this morning’s conference call, Nine CEO Hugh Marks said the merged entity will focus on high-growth areas of the business.
* Business Insider is published by Allure Media, a wholly owned subsidiary of Fairfax Media.