The QMS Media Ltd (ASX: QMS) share price rocketed 20% higher today after it was announced the company had received a takeover offer at an offer price of $1.22 per share.
QMS is a leading outdoor media company in Australia, New Zealand and Indonesia, specialising in providing clients and agency partners with quality outdoor advertising solutions.
QMS Takeover Offer
QMS looks likely to end up in the hands of a private equity firm with the company coming out of a trading halt today after announcing it had entered into a Scheme Implementation Deed (SID) with Quadrant Private Equity and its institutional partners.
The deal would see Quadrant acquire 100% of QMS in an all-cash offer of $1.22 per share. The deal values QMS’ equity at $420.6 million, with an enterprise value of $571.6 million.
The QMS board has unanimously recommended the scheme, in the absence of a better competing offer, but it will remain subject to a number of conditions including gaining the approval of shareholders and various regulatory bodies.
Commenting on the proposed takeover, QMS Chairman Wayne Stevenson said, “Having fully considered a range of strategic alternatives in relation to some of all parts of the QMS business, including the receipt of an unsolicited proposal from Quadrant, the Board believes this offer allows QMS shareholders to realise significant value for their shares.”
Adding, “Since QMS Media’s initial public offering in 2015, QMS Media has delivered significant shareholder value, as illustrated by the increase from its IPO price of $0.65 to the Scheme Consideration of $1.22.”
QMS shareholders are not required to take any action just yet but will be given the opportunity to vote on the proposed takeover at upcoming shareholder meetings.
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At the time of publishing, Luke has no financial interest in any companies mentioned.
