Credit: Sasun Bughdaryan via Unsplash https://unsplash.com/@sasun1990
Leading outdoor media play oOh!media, being circled by private equity firms looking for a bargain, has pushed back, seeking firm offers for a full takeover.
The company has given due diligence access to Pacific Equity Partners, I Squared Capital and Oaktree Capital Management.
All three on Friday reconfirmed their non-binding offers, with the smallest at $1.60 a share and the highest $1.65.
oOh! shares last traded at $1.475, giving it a market capitalisation of $779 million.
“Having considered all proposals in conjunction with its advisers, the board intends to continue to engage with all three parties, to allow those parties to finalise confirmatory diligence and negotiate binding transaction documentation on terms satisfactory to oOh!,” the company told the ASX this morning.
“This final process is expected to take up to four weeks.
“There is no certainty that any proposal will result in a binding offer or that any transaction will eventuate.
“oOh! will continue to update the market in accordance with its continuous disclosure obligations. The board recommends that shareholders take no action in relation to any proposal at this time.”
Pacific Equity Partners first approached the company in late April with an unsolicited $1.40 per share cash offer. I Squared Capital followed with a $1.45 per share proposal in May.
Early proposals for oOh!media were described by market analysts as opportunistic.
Analysts 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.
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 adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.