Fairfax Media shareholders give green light for Domain to be spun-off

Fairfax Chairman Nick Fallon told the Fairfax Media shareholders at its AGM in Sydney today that after considering the risks of the separation, the Board decided it was in the best interest of the company for Domain to separate.

“Under the Separation, Eligible Shareholders will receive one Domain Share for every 10 Fairfax Shares held, allowing Fairfax shareholders to own a direct interest in one of Australia’s leading real estate media and technology services businesses,” Falloon stated.

“Fairfax will retain a 60 percent interest in Domain immediately post Separation. Fairfax shareholders will hold the remaining 40 percent of Domain shares. Fairfax shareholders will also retain their existing Fairfax Shares, allowing you to continue to participate in the future of one of Australia and New Zealand’s leading multi-platform media companies.”

The Australian reports that Domain will keep its Agent Ownership Model, where real estate agents receive a share of revenue based on their advertising booking volumes.

Fairfax announced its decision to spin-off Domain in February this year and was driven by the desire to accurately reflect the value of Domain in its share price.

The separation still requires approval from the court which is scheduled for November 6.

If approved, Domain shares are expected to trade on the ASX from November 16,  with normal trading expected to commence on November 23.

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Azal Khan

Azal Khan was a in-house features writer for Elite Agent Magazine.