Domain loses $320m in market value as chief Antony Catalano quits for family reasons

ABOUT $320 million was torn from Domain’s market value after revelations chief Antony Catalano was quitting shocked the real estate and media sectors.

Domain chief Antony Catalano is quitting for family reasons. Picture: Paul Loughnan

SHARES in Domain Holdings went into free fall after its brash chief executive controversially quit only two months after the business was spun out of Fairfax Media.

About $320 million was torn from Domain’s market value after revelations chief Antony Catalano had told the board he was quitting for family reasons.

Shares closed down 17.17 per cent at $2.75.

Shares in Fairfax Media, which owns 60 per cent of ­Domain, also sunk 9.7 per cent to 65 cents.

The move, which shocked the real estate and media sectors, means Mr Catalano will miss out on possible bonuses of up to $5 million.

The 50-year-old Mr Catalano, who has eight children from three marriages, said if he remained in the top job it put pressure on his family.

“When I rejoined Fairfax in November 2013, I made a commitment to my young family that I could be there for them and do the job,” Mr Catalano said.

“It has become clear to me that doing the job of a listed company CEO the way it needs to be done means that I am not meeting that family commitment.

“I understand and regret that the timing of this decision is unusually short from Domain’s listing.”

Domain chairman Nick Falloon will act as executive chairman.

He said it was “becoming apparent” he needed to relocate from Melbourne to Sydney, which would disrupt his children’s schooling and see “young family members living in different cities”.

Mr Catalano owns the luxury Rae’s On Wategos resort at Byron Bay, and last year it was reported he had bought a luxury 26m yacht and private plane.

The media executive has often made headlines himself, including in 2015 having his driver’s licence cancelled for 16 months and being fined $500 after a court found him guilty of drink driving.

Domain’s chairman, Nick Falloon, will act as executive chairman as the search for a new chief kicks-off.

Mr Falloon said he had been informed of the dec­ision over the Christmas break.

“(Mr Catalano said he) had realised that the demands of his role and his absence from the lives of his family were proving more challenging than he had expected and he had decided to put his family first,” Mr Falloon said.

Investment bank Citi described the move as a “big surprise” given the stock had only been listed for two months.

“We maintain our ‘sell’ rating on the stock,” it said.

Citi analyst David Kaynes said: “Antony Catalano was a key factor in the success of the separation of Domain from Fairfax in our view, with the next level of management not nearly as well known to investors.

“The reason given for the resignation is personal, and an in-line trading update suggests the business remains on track,” Mr Kaynes said.

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