I Squared to buy oOh!media for A$898 million in all-cash deal

I Squared Capital has agreed to acquire Australian outdoor advertising company oOh!media in a deal that values the company's equity at about A$898 million and the transaction at A$1.04 billion including debt. The acquisition will be carried out through a scheme of arrangement under a binding agreement, with shareholders set to receive A$1.70 per share in cash, made up of A$1.68 in scheme consideration and a fully franked interim dividend of 2 Australian cents. The offer represents a 6.9% premium to oOh!media's closing price of A$1.59 on Aug. 7, a 21.4% increase over Pacific Equity Partners' initial A$1.40-per-share non-binding proposal in April, and a 100% premium to the company's A$0.85 closing price on April 28, when that approach was received. Interest in oOh!media intensified after Pacific Equity Partners launched its takeover proposal, drawing rival bids from I Squared Capital and Bain Capital, while Oaktree Capital was also among global investment firms that showed interest. Chair Philippa Kelly said the board unanimously backed I Squared's offer after a comprehensive and competitive process. The board is also expected to pay a fully franked special dividend of about 10 Australian cents per share before the scheme is implemented.

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