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Tuesday 20

November, 201811:43 AM



Fairfax chairman buys stake in Nine

Fairfax chairman buys stake in Nine

Fairfax Media chairman Nick Falloon's family super fund has bought a $374,000 stake in Nine Entertainment ahead of the companies' planned merger.

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By AAP 26.10.2018 10:16 AM

Fairfax Media chairman Nick Falloon has bought a $374,000 stake in Nine Entertainment ahead of the companies' planned merger.

Fairfax says Mr Falloon bought 200,000 Nine shares at $1.8691 each through Avanteos Investments Limited, which is acting as custodian for Mr Falloon's family super fund.

Nine shares were worth $2.52 prior to July's announcement of the plan to merge with Fairfax.

Despite an initial bump, Fairfax shares have also fallen - 18 per cent to 63.5 cents - since the announcement, and Citi analysts believe the merger may not secure approval from Fairfax shareholders.

Nine's offer to Fairfax shareholders on July 26 included 0.3627 Nine shares for each Fairfax share plus 2.5 cents in cash - a 22 per cent premium at the time.

With Nine shares priced at $1.74 prior to Friday's market open, that equates to 65.6 cents per Fairfax share - a slender 3.3 per cent premium.

The merger is also subject to approval from the competition watchdog.

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