Fairfax family buys back a stake in the farm

The mega merger will create the largest integrated metropolitan, regional and rural print and digital media business in the region. It is expected two new non-executive board positions at Fairfax Media will be filled by the Fairfax brothers completing a long-held ambition to return to the once family controlled media company.

The new group will have an enterprise value of over $9 billion, according to Ronald Walker, who will remain as Chairman of the Board of Fairfax Media. “This is a great day for both our companies,” he said.

“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, nine radio licences in Queensland and South Australia, and over five 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.

“I will invite two non-executive directors from Rural Press to the Fairfax Media Board.”

John B. Fairfax, Chairman of the Board of Rural Press, said, “Fairfax Media is a company which through its online activity and broad media interests in Australia and New Zealand provides opportunity for enhanced growth. The merger with Rural Press will provide opportunities for Fairfax Media to leverage its online media businesses and expertise across regional communities throughout Australia.
“Since listing on the public markets in 1989, Rural Press’ management has focused on growing the company’s regional publishing activities. During this time, Rural Press has grown from a company with a market capitalisation below $200 million in 1989 to over $2.3 billion today.”


David Kirk will remain as CEO of the expanded company with Brian McCarthy, CEO of Rural taking on the role of deputy CEO, responsible for metropolitan, regional, rural and magazine publishing and printing in Australia. Fairfax Business Media, Fairfax Media in New Zealand, Fairfax Digital, and Trade Me continue to report to David Kirk.

Fairfax Media is the publisher of Sydney and Melbourne’s leading broadsheet newspapers, The Sydney Morning Herald and The Age. Media barons Rupert Murdoch (7.5%) and Kerry Stokes (3%) bought separate shareholding positions in the company in recent weeks in order to be able to influence any changes in ownership. Because the Rural Press merger is a cash and scrip proposal, their two strategic stake holdings are of much less significance now.

The Fairfax family owned and controlled Fairfax Media until the 1980s when cousin Warwick Fairfax cost the family its controlling interest in an ill-advised takeover bid.

The synergies between the two media groups are obvious, not least in their arsenal of modern MAN Roland web presses. The combined array represents the largest cold and heatset web printing capacity in the region.