The oOh!Media Ltd (ASX: OML) share price has jumped 40% after receiving an exciting takeover offer.
oOh!Media describes itself as a leading out of home media company that helps advertisers, landlords, leaseholders, community organisations, local councils and governments reach large and diverse public audiences.
Its extensive network of digital and static asset locations across Australia and New Zealand include roadsides, retail centres, airports, train stations, bus stops, office towers and universities.
Takeover offer
oOh!Media confirmed that it has received a non-binding indicative offer from Pacific Equity Partners (PEP) to acquire the whole business for a cash consideration of A$1.40 per share.
But, the offer for the ASX share is subject to a number of conditions, including the satisfactory completion of due diligence by PEP.
The offer also needs a unanimous recommendation of the proposal by the oOh! board of directors and a statement that each oOh! board member will vote all of the oOh! shares they own or are in control of will be in favour of the proposal.
The above condition assumes there isn’t a better takeover offer received and that an independent expert concludes the proposal is in the best interests of shareholders.
Other conditions include final approval of PEP’s investment committee to enter into a binding takeover deal.
Finally, the deal needs approvals from the Foreign Investment Review Board (FIRB) and the Overseas Investment Office (OIO).
Future adjustments?
PEP has stated that the terms of the proposal may be adjusted to take into account the impact of any further share buyback, dividends, distributions, changes in share capital, acquisitions, divestments or material undisclosed liabilities.
oOh!Media answer
The ASX share’s board of directors, together with its advisers, is considering and evaluating the proposal, and will update shareholders in due course.
The company said there’s no certainty that the proposal will result in a binding offer or that any transaction will happen.
oOh!Media’s board of directors currently recommends that shareholders take no action about the proposal.
Considering the oOh!Media share price is still substantially below the offer price, there is more potential upside. If I were already a shareholder, I’d be happy to hold for to see how this plays out.
If the takeover goes ahead, I’d be happy to put the money into ASX growth shares.
