Fairfax Media is expected to mount a full takeover of Antony Catalano's Metro Media Publishing Holdings before Christmas, a source close to the deal says.
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Fairfax – owner of The Age, The Sydney Morning Herald and The Australian Financial Review – already owns half of the company that publishes weekly real estate and lifestyle magazines as well as a range of websites, including reviewproperty.com.au.
It is understood the price-tag for the remaining 50 per cent stake, which Mr Catalano own with a handful of real estate agents, could fetch up to $75 million.
This would value the entire holdings company at $150 million, or 8.5 times earnings. MMP Holdings' earnings from its 70 per cent ownership of its subsidiary companies were about $17.5 million in 2014.
Fairfax paid $35 million for its stake in 2011 when MMP's earnings were about $4 million.
That deal also included merging Fairfax Community Network's newspapers, which included 32 titles, with MMP.
A source close to the deal said that Fairfax was genuinely interested in buying out Mr Catalano and the group of real estate agents and was expected to submit a formal offer before Christmas.
It is believed that Fairfax's offer would include cash and scrip.
Mr Catalano - who became chief executive of Fairfax's real estate business Domain late last year - declined to comment on the sale, only to say: "I've been asked this question for the past two-and-a-half years when Fairfax first bought its stake".
A Fairfax spokesman said there is no deal at present.
