LACHLAN Murdoch, son of News Corp Chairman Rupert Murdoch, announced a bid yesterday to buy Australian media group Consolidated Media Holdings Ltd for A$3.31 billion (US$2.9 billion).
The deal is being driven by Lachlan Murdoch's private investment vehicle Illyria Pty Ltd, unnamed equity partners and Consolidated Media's major shareholder Consolidated Press Holdings Ltd, the target's board said in a statement to the Australian Securities Exchange.
Illyria and its partners plan to set up a 50-50 joint venture with Consolidated Press to run Consolidated Media as a private company, the statement said. Consolidated Media, among other things, holds stakes in pay television business Foxtel and Australia's Nine television network.
The deal would bring together Australia's two most powerful media dynasties. Australia's richest man James Packer, a friend and contemporary of Lachlan Murdoch, is executive chairman of Consolidated Press and executive deputy chairman of Consolidated Media.
Lachlan Murdoch's move is independent of News Corp. He left his father's Australia-born global media business in 2005, but remains a News Corp director. He now runs private investment fund Illyria.
Consolidated Press has given its support to the proposal but is still to reach final agreement with Lachlan Murdoch's fund as to the terms of the consortium, the statement said.
Trading in Consolidated Media's shares was halted before the Australian market opened yesterday.
The statement, issued after the market closed, described the proposal as nonbinding and indicative.
Completion of the deal is subject to a number of conditions, including discussions with Australia's securities regulator, finalization of funding and a joint venture agreement between Consolidated Press and Illyria, Illyria said in a statement.