Auckland, Apr 14: New Zealand's Independent Newspapers Limited (INL) said today it had signed a heads of agreement to sell its publishing business for 649 million US to Australia's John Fairfax holdings. INL is 45 per cent owned by Rupert Murdoch's News Corp. Industry observers believe Murdoch is consolidating his global holdings in pay television operations, and INL is retaining its 66 per cent of New Zealand's Sky TV.
Both INL and John Fairfax on Friday suspended trading in their shares on their respective exchanges. INL's publishing business includes the Dominion Post, The Press, The Sunday Star-Times, Sunday News, seven regional dailies and 61 community publications.
It also includes 13 magazine titles and the Gordon and Gotch distribution business as well as the stuff website business and commercial printing interests. Fairfax's flagship mastheads include the Sydney Morning Herald, Melbourne Age and Australian Financial Review.
In a statement, INL chairman Ken Cowley said the sale excludes the Victoria, Australia Newspaper, The Geelong Advertiser.
"The price paid by Fairfax Holdings would provide share holders with a premium," Crowley said. The sale was subject to Fairfax completing its equity funding for the acquisition by April 23, due diligence review of the business by May 12 and Fairfax obtaining overseas investment commission consent by June 25.
Bureau Report