(Reuters) - Fairfax Media <FXJ.AX> 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 <FB.O>, Google <GOOGL.O> and Netflix <NFLX.O>.
Domain, however, has benefited from a property boom in Sydney and Melbourne.
A standalone Domain listing could compete more directly with REA Group Ltd <REA.AX>, a property classifieds business two-thirds owned by News Corp <NWSA.O>.
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 [TPG.UL] 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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