oOh!media launches $167 million equity raising

Chris Pash
By Chris Pash | 26 March 2020

Outdoor media specialist oOh!media announced a $167 million equity raising to "improve the company’s financial flexibility and liquidity" in uncertain times.

The offer price is $0.53 a share, a discount to the last traded price of $0.84, indicating a market capitalisation of around $200 million.

Cash raised will be used to pay down debt. Net debt was $354.5 million at the end of December 2019.

The company has also found cost savings of $20 million to $30 million.

Capital expenditure will be cut by between $25 million and $35 million below the previous guidance range of $60 million-$70 million.

Brendon Cook, who previously announced his intention to step down as CEO, has agreed to stay until at least the end of this calendar year.

“With the impact of the economic outlook remaining uncertain at this time, we see risk around trading for FY20 and as such have taken the prudent and cautious measure of raising equity to repay debt, and implementing cost control measures and capex eductions," he says.

"Despite this challenging market environment, management believes the fundamentals for the out-of-home industry remain positive.

"The Initiatives we announced today provide the company with significant liquidity to trade through uncertain times ahead, and will position oOh!media to continue leading the out of home industry which we believe is a long-term structural growth sector.”

initiatives

Year-to-date revenue has been tracking to guidance. The company has, however, withdtrawn its guidance in the face of disruption from the coronavirus

"However, as the company has over nine months remaining in FY20 and due to the evolving macroeconomic conditions and the resulting market uncertainty caused by COVID-19, forecasting of full year revenue in the current environment is difficult," the company told the ASX.

Details of the fully underwritten equity raising: 

 equity

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