September 22, 2017 / 5:18 AM / a year ago

UPDATE 1-Australia's Fairfax Media gets approval to vote on Domain separation

(Adds background on Domain spin-off, share move)

Sept 22 (Reuters) - Fairfax Media on Friday said it received approval by an Australian court to hold a shareholders meeting to vote on the separation and listing of its classified ads business for properties, Domain Holdings Australia Ltd.

If the separation is approved in the Nov. 2 meeting, shareholders would receive one Domain share for every 10 Fairfax shares held, the company said in a statement.

Australian media companies have been under pressure as customers seek content more cheaply online and advertisers focus their spending on internet giants like Facebook, Google and Netflix.

Domain, however, has benefited from a property boom in Sydney and Melbourne.

A standalone Domain listing could compete more directly with REA Group Ltd, a property classifieds business two-thirds owned by News Corp.

Fairfax has ramped up efforts to break out its Domain business, the biggest contributor to company revenues, after U.S. private equity firms TPG Capital Management and Hellman & Friedman abandoned moves to acquire the company.

Fairfax shares were steady after the announcement.

Fairfax in August said it would retain 60 per cent of a separately listed Domain. (Reporting by Susan Mathew in BENGALURU; Editing by Tom Hogue)

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