I Squared Capital wins oOh!media takeover battle with A$1.04 billion bid
oOh!media agrees to A$1.04 billion takeover by I Squared Capital, ending a competitive bidding war that drew global investors.
Australian outdoor advertising company oOh!media has agreed to be acquired by infrastructure investor I Squared Capital in a deal valued at A$1.04 billion (approximately $734.55 million), including debt. The agreement follows a protracted bidding contest that attracted interest from several global investment firms.
Under the binding scheme of arrangement, oOh!media's equity is valued at about A$898 million. Shareholders will receive A$1.70 per share in cash, comprising A$1.68 per share in scheme consideration plus 2 Australian cents in a fully franked interim dividend.
The offer represents a 6.9% premium to oOh!media's closing share price of A$1.59 on August 7. It also marks a 100% premium to the company's closing price of A$0.85 on April 28, when rival suitor Pacific Equity Partners first tabled its initial A$1.40-per-share non-binding proposal.
Interest in the company intensified after Pacific Equity Partners launched its takeover offer in April, prompting competing bids from I Squared Capital and Bain Capital. Oaktree Capital also participated in the process.
oOh! Chair Philippa Kelly said the board unanimously recommended the I Squared Capital offer following a comprehensive and competitive process. The board is expected to pay a fully franked special dividend of about 10 Australian cents per share before the scheme is implemented.