John Fairfax Holdings, publisher of the Sydney Morning Herald and The Age will once again hold Australian commercial radio licences, following today’s mega-merger with Rural Press.
In a statement to the market, Fairfax Chairman Ron Walker says:
“Fairfax Media’s role as a leading Australian media company has been greatly strengthened through this combination with Rural Press.
“This is a great day for both our companies. The publishing businesses of both companies are substantially expanded and we have immense opportunities online.
“With a geographic footprint covering the metropolitan markets of Sydney, Melbourne and now Canberra, with the prestigious Canberra Times, printing and publishing with over 240 rural, regional and community publications, a substantial presence in New Zealand, a significant agricultural publishing presence in the USA with over 20 titles, 9 radio licences in Queensland and South Australia, and over 5 million visitors to the Fairfax Digital sites and farmonline.com.au, canberratimes.com.au and yourguide.com.au, the Group is well placed for future growth.
“This merger clearly meets our investment criteria of benefiting Fairfax Media shareholders by advancing Fairfax Media’s strategic growth and increasing shareholder value. Our dividend payout will be maintained.
“With an enterprise value of over $9 billion, we are poised for stronger growth and further strategic expansion of our brand in Australia and overseas in the years ahead.
“I will invite two non-executive directors from Rural Press to the Fairfax Media Board.
“This merger has been contemplated by both companies over a number of years. We look forward to the successful completion of the transaction.”
The merger will re-unite both sides of the Fairfax dynasty and will signal the first time John Fairfax has held radio assets since its ownership of Macquarie in the 1980s. At that time young Warwick Fairfax split up the company’s assets and divested it of its radio interests, leading to the decline of the Macquarie Radio Network’s giant network of stations and affiliates and reshaping the radio landscape at that time.
John Fairfax also owned Sydney radio station 2UE until 1954 when the company sold to pursue television broadcasting interests.
To view the company’s presentation about the merger, click the link below.