oOh!media has received an unsolicited offer valued at $747 million from Pacific Equity Partners (PEP) to acquire the outdoor media company for $1.40 a share in cash.
Shares in the company jumped more than 38% to be trading at $1.175.
oOh!'s board of directors said the company is considering the proposal.
“The board of oOh!, together with its advisers, is considering and evaluating the proposal and will update shareholders in due course,” read the ASX release.
“There is no certainty that the proposal will result in a binding offer or that any transaction will eventuate."
UBS Securities Australia Limited has been appointed as the financial adviser and Mallesons as the legal adviser for oOh!media.
Market analysts are upbeat on the outdoor media sector and see more upside for oOh! if it can gain more market share.
They see the company's recent share price as cheap and value the company at more like $1.55 a share.
In the latest financial results, oOh!media lifted revenue 8.8% to $691.36 million for the year to December, despite a tougher advertising market in the second half of the year.
Adjusted underlying net profit after tax (NPAT) was up 7% to $63 million and the company declared a fully franked final dividend of 4 cents a share, up 14%.
James Taylor, the new CEO, has promised a more responsive outdoor media company, investing in the tools needed by its sales teams to make dealing with oOh! easier.
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