Bain Capital Joins oOh!media Bidding War as Rival Takeover Offers Emerge
Synopsis
Bain Capital has entered the race to acquire oOh!media, creating a three-way bidding war alongside I Squared Capital and Pacific Equity Partners. The Australian advertising company said Bain's proposal matches I Squared Capital's A$1.45-per-share offer, valuing the business at A$765.9 million. Following the announcement, oOh!media shares jumped 9.2%, reaching their highest level since late May. The takeover battle began in April when Pacific Equity Partners submitted a A$1.40-per-share offer. Since then, the company's stock has gained nearly 60% as investor interest in a potential deal continues to grow.
Key Highlights
- Bain Capital is now bidding for oOh! media.
- The new move marks a three-way bidding war against I Squared Capital and Pacific Equity Partners.
- The A$1.45-per-share offer from Bain was equal to one made by I Squared Capital
- Following the announcement, media shares surged 9.2%.
- The stock has climbed almost 60 per cent since the month of April.
Australian advertising company oOh! media stated that it received indicative takeover proposals from both Bain Capital and other financial sponsors, intensifying the competition to acquire the company, along with being in a three-way bidding war with I Squared Capital and Pacific Equity Partners.
The announcement was sent oOh! Wednesday, the share price was up 9.2% to A$1.37, the highest close since May 29. Investors also reacted to increased takeover interest, pushing the stock up for the second biggest intraday gain since late April.
Bain Capital offer was at terms equal to I Squared Capital's bid, which values oOh! media at A$765.9 million (US$540.57 million) or A$1.45 per share. However, oOh! Media did not provide additional details about Bain's proposal, and
The fight for the firm began this year when Pacific Equity Partners made an A$1.40 per share bid for the outdoor advertising company. Then, the offer came in at a 64.7% premium to the company's stock price.
oOh!media prices have risen by about 60%, regaining belief in investors that a deal may in the end be achieved. Bain Capital's involvement has only bolstered hopes that bidding competition can help prop up the company's value.
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