James Taylor.
Pacific Equity Partners, I Squared Capital and Oaktree Capital Management have lifted takeover proposals for oOh!media to $1.60 per share, while Bain Capital was not among the firms moving into the next round of bidding.
The three private equity firms returned revised, non-binding indicative offers after a three-week initial due diligence phase, with the board granting all three expanded access for up to six weeks.
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.
At the time, oOh!media CEO James Taylor said the company would evaluate the proposal before updating shareholders.
Oaktree Capital Management, which built a sub-5% stake in May, is now part of the group of bidders at the $1.60 per share level.
The board has maintained its position that earlier proposals did not reflect the company’s intrinsic value and has told shareholders to take no action.
Early proposals for oOh!media were described by market analysts as opportunistic, with Pacific Equity Partners’ initial $1.40 per share offer viewed as an entry point rather than a final valuation.
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.
"The premium is ostensibly alluring, particularly for new shareholders who took advantage of the recent stock price weakness," said Brian Han, director at Morningstar.
The company continues to operate in a softer advertising environment, with broader macroeconomic conditions weighing on demand across media markets.
I Squared Capital lifted its initial $1.40 per share proposal to $1.45 shortly after Pacific Equity Partners entered the process at the same level.
The current $1.60 per share indicative offers from Pacific Equity Partners, I Squared Capital and Oaktree Capital Management follow completion of limited due diligence and the granting of expanded access to information.
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.
The company said revised proposals are not expected to include adjustments for the ordinary course dividend for the half-year ended June 30, 2026.
The board also said there is no certainty any proposal will result in a binding offer.
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