May 7, 2017 / 9:50 PM / 6 months ago

TPG-backed consortium bids for Fairfax Media assets, Australian firm says

SYDNEY, May 8 (Reuters) - 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)

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