A spokesperson for Publish and Broadcasting Limited announced that the company’s division into two new companies would take place in spite of the new tax regime that came into effect in Australia. The company will summon its shareholders again soon to discuss the demerger proposal. The first shareholders’ meeting was adjourned due to the announcement made by the Minister for Revenue.

Minister Peter Dutton clarified the new regulations and explained that all corporate actions announced before October 13 would not be affected by the modification in the tax regime. “As PBL first announced its proposed demerger by schemes of arrangement in May 2007, the PBL board is satisfied the demerger proposal is not affected by the minister's announcement,” the company said in a statement.

PBL intends to create a new company called Crown, which will be in charge of its casino and international gaming assets, while a separate company called Consolidated Media Holdings will manage PBL’s stake in Foxtel and PBL Media.

The division of the company will include a $2 billion cash return to shareholders. After the demerger was made known, PBL’s shares rose 55c, reaching $20.80.