No one is entirely sure why APN News & Media increased its stake in Ooh!Media from 4.9% to 5.3% last week, but there's very little doubt among industry pundits that a "power play" is underway.
While the increase is minimal, it means the company has had to make its stake public for the first time, as a 5% holding is the cut-off point for keeping any investment under wraps. The timing is interesting, as APN made its play only weeks before Ooh!Media shareholders are due to vote on a $163 million takeover offer by Champ Private Equity.
APN News & Media has said the public revelation represent the company's confidence in the outdoor market, but would not be drawn on which way the company was going to vote.
Media analyst Steve Allen told AdNews, “By making their stake public, they are sending a clear message to stakeholders and Champ they want a seat at the table. They want a chance to influence the outcome, and a public shareholding gives them more options.
“Based on past comments [made by CEO Brett Chenoweth], I would deduce APN might vote yes to the takeover and then immediately do a joint venture with Champ, because they have said in the past they might become involved in more outdoor ventures.”
Conversely, Allen also said if APN chose to team up with another substantial Ooh!Media stakeholder, the company could cause hurdles for the takeover bid. However, he went on to say that he felt it was much more likely APN would want to vote in support of the deal.
A prominent media stock market analyst, who preferred to remain unnamed, said, “It looks like APN are making their presence known to the market. It probably means they are trying to push the whole deal through.”
Maxus chief operating officer Mark McCraith said APN's move indicates a desire to have a hand in shaping the overall outdoor market.
“By going public with their holding, they are making a clear statement to the potential investor [Champ] that they want to be involved, and they are also saying they want a hand in shaping the outdoor market. It's quite Machiavellian.”
When Champ made its $163 million offer for Ooh!Media, the outdoor owner's share price was around 16 cents, and has since sky-rocketed above 30 cents.
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