Private equity group I Squared Capital is taking over oOh!media in a deal valuing the outdoor media player at $1.04 billion.
oOh!media had been circled by private equity firms looking for a bargain. Others included Pacific Equity Partners and Oaktree Capital Management.
Today oOh! told the ASX it had entered a binding "Scheme Implementation Agreement" with OOH BidCo Pty Ltd, an entity owned and controlled by funds managed and/or advised by I Squared Capital and its affiliates, an independent global infrastructure investor, to acquire 100% of the company.
Shareholders will be paid $1.68 cash per share and an interim fully franked dividend of 2 cents cash per share.
“After a comprehensive and competitive process, the board is pleased to have reached a binding agreement with I Squared Capital, at an attractive price,” said oOh! Chair Philippa Kelly.
“I Squared’s focus on optimising the full value of the network aligns with the strategy of our CEO James Taylor and our experienced leadership team.
“The board unanimously recommends the scheme, which we believe reflects the strength of the number one OOH network across Australia and NZ, and would deliver a strong outcome for oOh! shareholders.”
I Squared Senior Partner Harsh Agrawal said oOh! has developed an impressive portfolio of out-of-home media infrastructure assets in a growing market.
“We look forward to partnering with the management team to build on the company’s market leadership and continue to deliver compelling out-of-home media advertising opportunities for customers,” said Agrawal.
Early proposals for oOh!media were described by market analysts as opportunistic.
They pointed to a gap between takeover pricing and longer-term valuation assumptions in the out-of-home advertising sector, alongside weaker near-term advertising conditions.
In its latest full-year results for FY2025, oOh!media lifted revenue 8.8% to $691.36 million, with adjusted underlying net profit after tax rising 7% to $63 million.
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