I Squared Capital agrees $634m take-private of Australia’s oOh!Media
US infrastructure investor I Squared Capital has agreed to acquire Australian outdoor advertising company oOh!Media for AUD898m ($634m), bringing an end to a months-long auction that attracted interest from several major private equity firms, according to a report by Bloomberg.
Funds managed or advised by I Squared and its affiliates will acquire all outstanding shares for AUD1.70 in cash, according to the terms announced on Monday. The offer represents a 6.9% premium to oOh!Media’s closing share price on Friday and values the company at an enterprise value of approximately A$1.04 billion.
The agreed price is around twice oOh!Media’s share price in late April, before Pacific Equity Partners launched the initial takeover approach that triggered the competitive process.
Sydney-based oOh!Media operates more than 30,000 advertising locations across Australia and New Zealand, spanning roadside billboards, transport hubs, rail stations and shopping centres.
I Squared said the company’s scale, portfolio of premium sites, range of advertising formats and extensive concession network underpin its leading position in the market.
I Squared manages approximately $60bn in assets and invests globally across infrastructure and related sectors.
oOh!Media shares rose as much as 4.9% following news of the agreement, taking their gains for the year to about 28% at the time of reporting.
The transaction also provides shareholders with the prospect of an additional return through a fully franked special dividend of approximately AUD0.10 a share, which the company’s board expects to declare and pay.
oOh!Media’s directors have unanimously recommended the I Squared offer. The transaction is not conditional on financing or further due diligence, according to the company.
The agreement concludes a competitive process that began with Pacific Equity Partners’ approach in April. I Squared, PEP and Oaktree Capital Management subsequently submitted conditional, non-binding proposals, while Bain Capital withdrew from the process in June.
The transaction is expected to close in late November or early December, subject to approval from oOh!Media shareholders and other customary conditions.