oOh!media receives $766m acquisition bid from I Squared Capital
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The news: oOh!media has received an unsolicited, conditional non-binding indicative offer from I Squared Capital (ISQ) that values the company at about $766 million, two weeks after receiving a lower priced offer from Pacific Equity Partners (PEP).
oOh!’s board and advisers believe both bids undervalue the company.
The numbers: ISQ’s offer is a cash consideration of $1.45 per share by scheme of arrangement. Multiplying this by the 528,211,762 oOh!media shares on offer equates to an offer value of about $765.9 million.
PEP’s bid is worth $1.40 per share.
The context: The ISQ offer is subject to reductions equivalent to future dividends or other distributions paid to shareholders. Other key conditions are “broadly consistent with those relating to the PEP proposal”.
However, the oOh!media board and its advisers have “unanimously determined” that neither proposal adequately reflects the intrinsic value of the business.
The board has informed both acquisition suitors that it “does not intend to recommend to shareholders any formal binding offer at or below the value of their respective non-binding indicative proposals”.
Although oOh! is prepared to give PEP and ISQ access to “a limited amount of due diligence information” if they sign non-disclosure agreements, oOh! said it is also engaging with other parties and “may potentially receive change of control proposals from one or more of those parties and potentially other parties”.
The source: ASX
