FOREIGN INVESTMENT CASE: TYNDALL AUSTRALIA LTDS PORTFOLIO INVESTMENT IN

JOHN FAIRFAX HOLDINGS LTD

The Government has decided to raise no objections under foreign investment

policy to a proposal by Tyndall Australia Ltd (Tyndall), and its wholly owned

subsidiaries, to acquire a portfolio interest in John Fairfax Holdings Ltd

(Fairfax) of up to 10 per cent.

In approving this proposal, the Government has taken into account the fact

that Tyndall, in the main, would be holding this interest in Fairfax, as fund

manager, for predominantly Australian client investors.

Foreign investment approval for Tyndall is conditional on Tyndall limiting

its vote in Fairfax to less than 5 per cent. The limit on Tyndalls voting

power is consistent with Tyndalls investment being a portfolio investment.

This conditional approval for Tyndalls investment in Fairfax is similar to

an earlier conditional approval for Bankers Trust Australia Ltd (BTA) by which

BTA had to limit its voting in Fairfax to less than 5 per cent. A press release

was issued on this matter on 8 August 1996.

Under foreign investment policy, portfolio investments in Fairfax of less than

5 per cent by foreign interests do not require prior approval. Portfolio investments

of 5 per cent or more require prior approval. Tyndalls portfolio investment

in Fairfax has the same voting power as other foreign portfolio investors with

the maximum investment before foreign investment approval is needed.

The foreign investment policy in relation to direct investments continues to

apply; that is, the maximum permitted foreign interest direct investment involvement

in national and metropolitan newspapers (including Fairfax) by a single shareholder

is 25 per cent and unrelated foreign interests are allowed to have non-portfolio

shareholdings of up to 5 per cent (ie, a maximum of 30 per cent).

CANBERRA ACT

4 August 1998

Contact Officer:

Richard Murray

Treasury

(02) 6263 3755