Fairfax Completes Domain Demerger
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The near two year process to separate the Domain property listings website business from Fairfax Media concluded yesterday with the shares in the group starting trading on the ASX.
In fact Domain’s debut on the ASX saw a filleting of the parent’s share price in the process.
Domain opened $3.80 and jumped as high as $3.98 in early trading before settling back around $3.69.
Fairfax has lost nearly a third of its share price to 73 cents as the market adjusts to the spin-off of 40% Domain. Fairfax retains a 60% stake. At $3.69 that stake is worth more than $1.27 billion, against a total value for Fairfax of just over $1.7 billion
The other 40% of Domain was distributed to existing Fairfax shareholders who received one Domain share for every 10 Fairfax shares.
The shares are trading on a deferred settlement basis for the next week.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.