Australia's Fairfax Media to demerge real estate arm

Sydney

AUSTRALIA'S Fairfax Media on Wednesday confirmed plans to demerge Domain Group, cheering investors even as the property division posted its first-ever drop in earnings due to falling property listings.

Fairfax shares surged up to 10.3 per cent, the highest intraday gain in more than three years, after the publisher of The Sydney Morning Herald and The Australian Financial Review newspapers announced the long-awaited demerger plan.