Fairfax shares are in a trading halt amid rumours the media company is preparing to spin off lucrative real estate listings business Domain.
In a statement to the ASX on Tuesday, Fairfax said that it had requested the halt "pending an announcement in relation to the Domain Group".
The Fairfax-owned Australian Financial Review reported that the company has launched a strategic review of its key asset with a view to a partial IPO before the end of 2017.
Fairfax would retain between 60 and 70 per cent of Domain, with Domain chief executive Antony Catalano leading the separate business, the AFR reported.
That would give Fairfax and Domain a similar relationship to that of rival News Limited and ASX-listed real estate classifieds business REA Group.
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The Rupert Murdoch-controlled media giant owns 61.6 per cent of REA.
Rumours that Fairfax will eventually spin off Domain - which contributed $296.3 million of the company's total $1.83 billion revenue in 2015/16 - have resurfaced regularly over the past few years.
The AFR this week reported that Macquarie Capital was advising on a possible sale.
Fairfax in November flagged a drop in Domain's first-half earnings as homeowners in Sydney and Melbourne hesitated to put properties up for sale, but the business has been an increasingly important moneyspinner as print revenues, advertising and circulations all continue to decline.
Fairfax is due to report its first-half results on Wednesday and the company's shares are currently in a trading halt, having closed at 87 cents on Monday.
