Top Australian newspaper publisher John Fairfax Holdings is considering emulating rival Publishing and Broadcasting Ltd by floating its internet operations.
PBL’s recent A$804m ($528m) listing of ecorp, in which it retains an 80% stake, was an unqualified success. Its shares were issued at A$1.20 ($0.79) but this week reached $2.65 ($1.74), valuing ecorp at A$1.78bn ($1.17bn).
Fairfax, which is also a major player in the Australian internet market, has taken note and has appointed Merrill Lynch and Morgan Stanley Dean Witter to assess and present options to the board regarding a potential float of its online and interactive businesses. Merrill Lynch had joined Goldman Sachs to assist in the listing of ecorp two weeks ago.
Chief executive Fred Hilmer, said it is a sensible time to explore options for a float, as operations have reached a critical mass of activity and viability. Fairfax is regarded by analysts as having an online presence equal to, or even exceeding, ecorp, although it has not struck as many alliances, and analysts say it could take over from ecorp as the country’s leading internet stock.
