Australian outdoor advertising company oOh!media (OML.AX) 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.
($1 = 1.4158 Australian dollars)
