Fairfax Nine merger details
On 26 July 2018, Fairfax Limited (ASX: FXJ) announced they had entered into a Scheme Implementation Agreement with Nine Entertainment Co (ASX:NEC) to merge the two companies. As the Fairfax/Nine corporate action is likely to impact many Australian investors using Sharesight, here are the important details:
If the proposed merger transaction goes ahead:
- Fairfax shareholders will receive 0.327 Nine shares for each Fairfax share they own
- Fairfax shareholders will receive $0.025 cash consideration for each Fairfax share they own
- The directors of Fairfax will unanimously recommend Shareholders vote in favour of the offer (unless a better offer is received)
- Once complete, the merged entity will be owned 51.1% by Nine Entertainment Co shareholders and 48.9% by former Fairfax shareholders
- The transaction is expected to be completed before the end of 2018
- Fairfax shareholders do not need to take action relating to this proposal at this stage -- with a Scheme Booklet containing information being sent to shareholders in the coming weeks
Please read the relevant ASX release for the full details of the proposal.
Full details on how to handle the Fairfax Nine Entertainment Co ASX merger will be available on the Sharesight help centre if and when the details are finalised, and we’ll update this blog with a link to the guide when it’s ready.
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