oOh!media has granted three private equity bidders further due diligence access after revised takeover proposals lifted to $1.60 per share, valuing the out-of-home company at about $845 million.
Pacific Equity Partners, I Squared Capital and Oaktree Capital Management have each returned revised, non-binding indicative offers at the higher price. Bain Capital was not among the firms moving into the next round of bidding.
The revised proposals follow a three-week initial due diligence phase. oOh!media’s board has now granted the three remaining bidders expanded access to company information for up to six weeks.
What is happening with the oOh!media takeover bids?
The process began in late April when Pacific Equity Partners approached oOh!media with an unsolicited $1.40 per share cash offer. I Squared Capital later followed with a $1.45 per share proposal.
Oaktree Capital Management, which built a sub-five per cent stake in oOh!media in May, has now joined the bidding group at $1.60 per share.
The company’s board has maintained that earlier proposals did not reflect the company’s intrinsic value. Shareholders have been told to take no action while the process continues.
oOh!media told investors on Monday: “Having considered all proposals in conjunction with its advisers, the board intends to provide further due diligence access to those parties, which is expected to take up to six weeks.”
The company added: “There is no certainty that any proposal will result in a binding offer or that any transaction will eventuate, and oOh! will continue to update the market in accordance with its continuous disclosure obligation.”
Why private equity is circling oOh!media
oOh!media remains one of Australia’s largest out-of-home operators, with assets across billboards, street furniture, retail, airport and transport environments.
The takeover interest comes after a difficult period for the company, including contract losses, margin pressure and a weaker advertising market. The company also appointed James Taylor as chief executive at the start of the year, while former chairman Tony Faure stepped down last month.
James Taylor
The out-of-home sector has continued to grow its share of the broader advertising market, supported by digitisation and improving audience measurement. That longer-term outlook has made the sector attractive to financial buyers, despite softer near-term media conditions.
Shareholder view and valuation
Major shareholders have previously suggested the initial approaches undervalued the business.
Justin Hance, partner and portfolio manager at Harris Oakmark, which holds 6.1 per cent of oOh!media, told the Australian Financial Review last month: “We believe that the publicly disclosed offers from both Pacific Equity Partners and I Squared Capital undervalue oOh!media’s shares.”
Hance added: “That being said, we fully support the board’s decision to offer limited due diligence and believe that any materially higher offers should receive full consideration from the board.”
In its FY2025 results, oOh!media reported revenue of $691.36 million, up 8.8 per cent. Adjusted underlying net profit after tax rose seven per cent to $63 million.
The revised proposals are not expected to include adjustments for the ordinary course dividend for the half-year ended 30 June 2026.
The company has stressed that the current proposals remain non-binding. Any final transaction would still require a binding offer, board consideration and shareholder approval.