June 9 - oOh!media, the Australian advertising group, said on Tuesday it had received indicative takeover proposals from Bain Capital and other financial sponsors, initiating a three-way bidding contest with existing suitors I Squared Capital and Pacific Equity Partners.
The company disclosed that Bain Capital had put forward an offer that matched the terms of I Squared Capital’s proposal, which values the business at A$765.9 million and equates to A$1.45 per share. The firm did not provide further specifics of Bain’s proposal, and Bain Capital did not immediately respond to a query on the deal value.
Market reaction and share movement
- oOh!media shares rose 9.2% to A$1.37, reaching their highest intraday level since May 29 and representing the largest single-day jump since late April.
- The stock has advanced almost 60% since Pacific Equity Partners first tabled an offer in April.
- Pacific Equity Partners was the first to enter the process earlier this year with a proposal of A$1.40 per share, which at the time represented a 64.7% premium to the prevailing share price.
Procedural notes and reporting
oOh!media confirmed the indicative offers in a company statement but did not publish full details of each bid. Reporting earlier indicated that Bain Capital had signaled its intent to pursue oOh!media, with that report appearing the day before. The company also noted the prevailing currency reference for conversion: $1 = 1.4168 Australian dollars.
With multiple financial sponsors now competing, the process remains fluid and the exact terms and outcomes will depend on further engagement between the bidders and the company.
Implications
The development places the advertising and media sector in focus as private equity and other financial sponsors vie for control of an outdoor advertising asset. Equity holders in oOh!media have already seen significant price moves since the initial approach, with the share price sensitive to any incremental updates from the bidders or the company.