Domain valued at over $2 billion

Domain valued at over $2 billion - 26th September 2017

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Analysts have valued Fairfax Media's Domain real estate business at more than $2 billion.

Fairfax shareholders will vote on the planned spin-off of Domain on November 2, and will receive one share in a newly listed Domain for every 10 Fairfax shares owned, if the plan is approved.

Citi analysts David Kaynes, Kofi Mensa and Manisha Sandilaya have trimmed their valuation of Domain since details of the spin-off were released by Fairfax last week.

They value Fairfax Media, which has 2.3 billion shares on issue, at $1.10 per share, with Domain's value dropping from $1.02 to 88 cents, putting the company's value at $2.02 billion.

Mr Kaynes said the cuts to Domain's valuation were due to higher than expected corporate costs of between $10 million and $12 million, from the $8 million to $10 million previously disclosed, and the net debt that Domain will have at listing.