I Squared to buy oOh!media for A$1.04 billion

US-based infrastructure investor I Squared Capital has reached an agreement to acquire Australian out-of-home advertising group oOh!media through a binding scheme of arrangement. The transaction values oOh!media’s equity at about A$898 million and the company including debt at A$1.04 billion, which has been reported as roughly US$734.55 million. The agreement positions oOh!media to move from public ownership into private hands under I Squared’s control, subject to completion conditions.

The deal caps a sale process that attracted interest from several global investment firms. I Squared has emerged as the successful bidder, securing a binding agreement with oOh!media after this competitive auction. The focus now shifts to the formal steps required to implement the scheme and return cash to shareholders.

Under the agreed terms, oOh!media shareholders are to receive A$1.70 per share in cash. This total comprises A$1.68 per share of scheme consideration and a fully franked interim dividend of A$0.02 per share. The cash consideration is structured to be delivered via the court-approved scheme of arrangement once all approvals are obtained.

In addition to the interim dividend, the oOh!media board is expected to declare a fully franked special dividend of about A$0.10 per share before the scheme is implemented. This would provide shareholders with further cash returns alongside the scheme consideration. The combination of scheme payment, interim dividend and special dividend defines the overall value available to investors under the transaction.

oOh!media’s board has unanimously recommended that shareholders vote in favour of the I Squared Capital proposal, in the absence of a superior offer and subject to the customary conditions associated with such recommendations. The directors’ support signals alignment between the company’s leadership and the transaction terms now on the table.

Implementation of the scheme remains conditional on shareholder approval, which is expected to be sought in October, as well as regulatory clearances in Australia and New Zealand. These approvals are standard for a transaction of this size and nature and must be secured before the scheme can become effective and the consideration paid. Until then, oOh!media continues to operate as a listed company while progressing the transaction steps.