Fairfax to sell radio assets

Australian newspaper group Fairfax Media said it plans to sell its metropolitan and regional radio stations, Sydney Morning Herald reported.


The Australian media company had hired KPMG to advise on the sale process. According to The Australian, which cited analysts, this deal could fetch as much as A$250 million, which is expected to use the proceeds to repay debt and increase financial flexibility.


The deal is expected to close by the end of the calendar year, if there is a buyer at the right price, Reuters reported.


“The decision to consider the divestment of Fairfax Radio has been taken in response to strong expressions of interest from prospective acquirers and as part of our ongoing review of opportunities to maximise shareholder value and the mix of assets we own,” said chief executive Greg Hywood in a statement.


As of now, John Singleton’s Macquarie Radio network and private-equity firms have shown interests in the sale.


Fairfax shares were up 0.5 percent to A$1.045 shortly after the market opened Tuesday.

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