SYDNEY May 8 A consortium led by U.S. private
equity firm TPG Capital made an indicative proposal on Friday to
acquire Fairfax Media Ltd's metropolitan newspapers and
Domain real estate classifieds unit for cash, the CEO of the
Australian media firm said in a memo to staff on Sunday evening.
The Sydney Morning Herald, owned by Fairfax, reported the
TPG proposal valued the metro newspapers and real estate
classified assets at A$2.2 billion ($1.63 billion).
The proposal would involve shareholders retaining scrip
exposure to the company's regional and New Zealand newspaper
assets as well as its radio and digital streaming divisions,
said the memo to staff seen by Reuters.
Fairfax Chief Executive Greg Hywood said the board would
consider the TPG proposal.
"There is no certainty that the indicative proposal will
result in an offer for Fairfax, what the terms of any offer
would be, or whether there will be a recommendation by the
Fairfax board," he said.
A Fairfax spokesman declined to comment. TPG could not be
reached immediately for comment.
($1 = 1.3488 Australian dollars)
(Reporting by Jamie Freed; Editing by Sandra Maler)