oOh!media has allowed three private equity firms to continue examining its business after each submitted improved indicative takeover proposals worth $1.60 per share, implying an overall valuation of roughly $845 million.

The revised, non-binding offers have come from Pacific Equity Partners, I Squared Capital, and Oaktree Capital Management. Bain Capital is no longer participating in the latest stage of the process.

The company noted that there is no guarantee the discussions will lead to a binding proposal or completed transaction and said it will continue updating the market in line with its disclosure obligations.

Private equity interest intensifies

As one of Australia’s leading out-of-home advertising companies, oOh!media operates a broad portfolio spanning billboards, retail locations, street furniture, airports and transport networks.

The recent interest from buyout firms follows a period of operational challenges, including lost contracts, pressure on margins and softer advertising conditions. Earlier this year, James Taylor assumed the role of chief executive, while former chairman Tony Faure departed the board in the past month.

After an initial due diligence period lasting around three weeks, the board has agreed to provide the remaining bidders with broader access to company information for a further period expected to run for up to six weeks.

Evolution of the bidding process

The takeover activity began when Pacific Equity Partners approached oOh!media in late April with an unsolicited cash proposal of $1.40 per share. I Squared Capital subsequently lodged an indicative offer of $1.45 per share.

Oaktree Capital Management, which accumulated a stake of less than five per cent in the company during May, later entered the process and is now among the parties offering $1.60 per share.

The board has previously indicated that earlier proposals did not fully recognise the company’s underlying value and has advised shareholders not to take any action while negotiations remain ongoing.

In its latest communication to investors, oOh!media said it had reviewed the proposals with its advisers and intended to extend additional due diligence access to the shortlisted bidders.

For FY2025, the company reported revenue of $691.36 million, representing growth of 8.8 per cent, while adjusted underlying net profit after tax increased 7% to $63 million.

The current indicative proposals are expected to exclude adjustments related to the ordinary course dividend for the half-year ending 30 June 2026. The company has also reiterated that the offers remain non-binding and that any eventual acquisition would still be subject to a definitive agreement, board approval and shareholder approval where required.