Thirty-plus people from the TPG Group camp descended upon Fairfax Media on Thursday for the first day of face-to-face meetings with management.
As Street Talk first reported, TPG's global chief investment officer Jonathan Coslet, who is based in the United States and has been with the firm since its inception in 1993, flew into Sydney for the meetings and fronted Fairfax management alongside TPG Australia boss Joel Thickins.
In a sign of how seriously TPG is taking the diligence program, it's understood the firm flew Coslet and two members from its specialist technology and media team into Australia for the meetings, where they were joined by TPG Australia's dealmakers and their bankers from Credit Suisse.
The total cohort was said to number more than 30.
TPG has two days with Fairfax management this week as part of its four-to-five week due diligence program.
The first day is expected to focus on Fairfax's online real estate arm Domain, before switching to Fairfax's traditional media business on Friday.
TPG is taking the meetings as it seeks to shore-up a $1.20 a share indicative bid for Fairfax, which values the company's equity at $2.8 billion. The offer was made in conjunction with Canada's Ontario Teachers' Pension Plan Board last month.
TPG is one of two bidders in Fairfax's dataroom. The other, Hellman & Friedman which offered $1.225 to $1.25 a share, fronted Fairfax management as part of its due diligence last week. Its camp was said to be much smaller, with 10 dealmakers including representatives from the firm and its advisers Deloitte and Bain.
Much of the focus was said to fall on real estate classifieds and services business Domain.
Fairfax shares were trading at $1.245 on Thursday.
TPG is advised by Credit Suisse and Gilbert + Tobin, while Fairfax is advised by Macquarie Capital and Herbert Smith Freehills. Hellman & Friedman is working with King & Wood Mallesons.
