International outdoor advertiser JCDecaux has submitted an indicative and non-binding proposal to acquire APN Outdoor.
JCDecaux has put forward a deal to APN worth approximately $1.1 billion. The French multinational corporation stated APN Outdoor would be complementary to its existing out of home media assets in Australia, which are primarily in the street furniture segment.
At this early stage, no agreement has been reached between the parties, and there is no certainty that the proposal will result in any transaction.
The APN board acknowledged the proposal and has commenced an assessment process, however, the board has advised shareholders not to "take any action" and that there is "no certainty" of a transaction.
JCDecaux entered the Australian market with the street furniture contract of Sydney before the Olympic Games in 2000 and since then has been developing its outdoor advertising franchise in Australia on an "organic basis".
"JCDecaux has a large portfolio of premium assets in Australia’s largest metropolitan areas that would significantly enhance APN Outdoor’s existing network," a statement read.
The deal follows the ongoing bidding war, involving APN, for control of fellow outdoor advertising company Adshel.
Last month, APN confirmed a $500 million bid for the HT&E-owned outdoor street furniture specialist, an extra $30m more than rival Ooh!Media's earlier bid.
JCDecaux recently won the advertising rights for Yarra Trams in Melbourne and Telstra under long-term contracts.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at email@example.com