Infrastructure investor I Squared Capital has officially won the high-stakes bidding war for oOh!media, agreeing to acquire the Australian outdoor advertising leader in a deal valued at A$1.04 billion ($734.55 million), including debt, the company announced on Monday.
A Competitive Path to Acquisition
I Squared emerged as the victor following a rigorous, months-long auction process. The contest for oOh!media attracted significant interest from top-tier global investment firms, including Pacific Equity Partners, Bain Capital, and Oaktree Capital, all vying to control the outdoor advertising giant.
Deal Structure and Shareholder Payouts
The transaction, which will be executed through a scheme of arrangement under a binding agreement, values oOh!media’s equity at approximately A$898 million. Under the agreed terms, oOh! shareholders are set to receive A$1.70 per share in cash. This total consists of A$1.68 per share in scheme consideration, supplemented by a 2 Australian cent fully franked interim dividend.
Assessing the Premium
The acquisition price reflects a 6.9% premium over oOh!media’s closing share price of A$1.59 on August 7. Furthermore, the offer signals a substantial 21.4% increase compared to the initial non-binding proposal of A$1.40 per share submitted by Pacific Equity Partners in April. Notably, the final deal represents a 100% premium over the company’s share price of A$0.85 on April 28, the day the initial interest from Pacific Equity Partners became public.
Board Approval and Next Steps
The intense bidding environment was sparked by the initial April offer, which drew competing bids from both I Squared Capital and Bain Capital. Philippa Kelly, Chair of oOh!media, confirmed that the board has unanimously recommended the I Squared Capital proposal following a comprehensive and highly competitive evaluation process. Additionally, the board expects to issue a fully franked special dividend of approximately 10 Australian cents per share to shareholders prior to the final implementation of the scheme.