I Squared wins bidding war for Australia's oOh!media with $735 million deal

Australian outdoor advertising company oOh!media said on Monday it had agreed to be bought by infrastructure investor I Squared Capital in an A$1.04 billion ($734.55 million) deal including debt.

I Squared emerged as the winning bidder ‌after a ⁠months-long contest ⁠for oOh!media that drew interest from several global investment firms, including Pacific Equity Partners, Bain Capital and Oaktree Capital.

The deal with I Squared ​Capital values oOh!media's equity at about A$898 million and will be implemented through a scheme of arrangement under a binding ​agreement.


Under the terms of the ⁠deal, oOh! ‌shareholders will receive A$1.70 per share in cash, ​comprising ​A$1.68 per share in scheme consideration and 2 ⁠Australian cents in 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 and a 21.4% increase over the initial A$1.40-per-share non-binding proposal tabled by rival suitor Pacific Equity Partners in April.

It also represents a 100% premium to the closing price of A$0.85 on ‌April 28, when the company received the Pacific Equity Partners offer.

Interest in the firm intensified after ​Pacific Equity Partners ​launched its ⁠takeover offer in April, prompting rival bids from I Squared Capital and Bain Capital.

oOh! Chair Philippa Kelly said the board unanimously recommended ​the I Squared Capital offer following a comprehensive and competitive process.

The oOh! board is expected to pay a fully franked special dividend of about 10 Australian cents per share before the scheme is implemented.