Singleton alliance with Rinehart puts Fairfax 'in play'
The agreement was signed on Friday between Messrs Singleton and Carnegie's Gutenberg Investments Unit Trust and Ms Rinehart's Hanrine Investments and Timeview Enterprises - part of the Hancock Prospecting Group, which owns 14.99 per cent of Fairfax.
The stated objective of the agreement was to "consult with each other on key matters affecting Fairfax with a view to enhancing shareholder value".
The parties told the stock exchange they had a combined stake of 15.14 per cent in Fairfax. Gutenberg, Macquarie Radio Network and two vehicles associated with Mr Carnegie's Companion Fund bought 0.15 per cent of the company, or 3.6 million shares worth $1.8 million at Monday's closing price of 51¢, up 3.5¢ on the day.
Mr Carnegie and Mr Singleton had hoped to acquire up to 4.9 per cent of Fairfax before informing the market but were told by lawyers Gilbert and Tobin, who drafted the consultation agreement, that they must disclose their association with Ms Rinehart.
It is understood Gutenberg was not buying yesterday, when another 18 million shares changed hands.
Mr Singleton and Mr Carnegie together own the majority of Macquarie Radio, which last year bid unsuccessfully for Fairfax Media's radio assets, including Sydney's 2UE and Melbourne's 3AW.
In a statement on Friday Mr Singleton said Gutenberg had bought into Fairfax Media as a result of the board definitively closing the door on a sale of their radio assets to Macquarie Radio.
BBY media analyst Mark McDonnell said Monday's share price reaction confirmed that Fairfax was "in play".
He said Ms Rinehart may not require long-term retention of the radio stations at Fairfax, while Mr Singleton's remarks suggest he is more interested in the radio stations.
Frequently Asked Questions about this Article…
Fairfax Media shares jumped more than 7% after the release of a consultation agreement between John Singleton and Mark Carnegie’s Gutenberg Investments and Gina Rinehart’s Hanrine and Timeview (part of Hancock Prospecting). The market reacted to news the parties aimed to consult on breaking up Fairfax and enhancing shareholder value.
The agreement, signed on Friday, links Gutenberg Investments Unit Trust (Singleton and Carnegie) with Hanrine Investments and Timeview Enterprises (Rinehart/Hancock Prospecting). Its stated objective is to consult with each other on key Fairfax matters with a view to enhancing shareholder value and it has been described as aimed at breaking up the company.
The parties told the stock exchange they have a combined stake of 15.14% in Fairfax. Hancock Prospecting’s holdings (via Hanrine and Timeview) are reported at 14.99% of Fairfax.
Yes. Gutenberg, Macquarie Radio Network and two vehicles linked to Carnegie’s Companion Fund bought 0.15% of Fairfax — about 3.6 million shares — valued at roughly $1.8 million at Monday’s closing price of 51¢ per share. It’s also reported Gutenberg was not buying on the following day when 18 million shares traded.
Yes. Singleton and Carnegie had hoped to acquire up to 4.9% of Fairfax before informing the market, but lawyers Gilbert and Tobin advised them they must disclose their association with Gina Rinehart, which triggered public disclosure of the arrangement.
John Singleton and Mark Carnegie together own the majority of Macquarie Radio. Macquarie Radio previously bid unsuccessfully for Fairfax Media’s radio assets, including Sydney’s 2UE and Melbourne’s 3AW.
Media analyst Mark McDonnell said Monday’s share-price reaction confirmed Fairfax was “in play.” He noted Gina Rinehart may not require long-term retention of Fairfax’s radio stations, while Singleton’s comments suggest he is more interested in preserving or acquiring the radio assets.
The public, stated goal of the consultation agreement is to consult on key matters affecting Fairfax with a view to enhancing shareholder value. The announcement has been framed as aiming to break up the company, which is why investors reacted strongly to the news.
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