oOh!media has agreed to a revised $1.70-per-share takeover offer from global infrastructure investor I Squared Capital, valuing the outdoor advertising company at about $898 million on an equity basis and $1.04 billion including debt.
Under the proposed scheme of arrangement, shareholders will receive $1.68 in cash for each oOh!media share, as well as a 2-cent fully franked interim dividend already approved by the board.
The revised proposal represents a 21.4% increase on I Squared’s initial approach in April and is more than double oOh!media’s undisturbed share price before the original bid emerged.
oOh!media chair Philippa Kelly said the board was “pleased to have reached a binding agreement… at an attractive price” following what she described as a “comprehensive and competitive process”.
I Squared Capital senior partner Harsh Agrawal said oOh!media had developed “an impressive portfolio of out-of-home media infrastructure assets”.
The oOh!media board has unanimously recommended shareholders vote in favour of the transaction, with the exception of director David Ferrarin, who has a potential conflict of interest.
Shareholders could also receive a special dividend of about 10 cents per share, subject to the transaction timetable and other conditions.