Key Takeaways
- • Oaktree Capital Management has accumulated a sub-5% stake in oOh!media and is evaluating whether to submit a non-binding indicative offer, intensifying competitive tension in an already active take-private process.
- • oOh!media's board has rejected two prior bids: Pacific Equity Partners' $1.40 per share offer (65% premium) and I Squared Capital's $1.45 per share offer, citing both fall short of the company's intrinsic value assessment.
- • The take-private process now involves multiple major private equity sponsors including PEP (Macquarie-advised), I Squared Capital (JPMorgan-advised), and potentially Oaktree, signaling robust competition that may drive valuations upward.
- • TAL Dai-ichi Life Australia and related entities disclosed a 6.20% relevant interest in oOh!media, adding another stakeholder to the shareholder register scrutiny as the process unfolds.
- • Investment bank Jefferies is advising a potential bidder with prior Nine relationships, broadening the advisory landscape and suggesting additional players may yet emerge in the formal bidding phase.
Summary
oOh!media's take-private auction has expanded significantly, with Oaktree Capital Management now circling the Australian outdoor media company after it rejected two substantial private equity offers within weeks of each other. According to the primary source, Oaktree has built a sub-5% stake and is weighing submission of its own non-binding indicative offer, though the firm has not yet committed to proceeding with a formal bid. Oaktree declined comment when contacted.
The competitive landscape has already intensified with two rejected proposals on the table. Pacific Equity Partners submitted a $1.40 per share bid valuing the company at approximately $750 million, representing a 65% premium to prevailing market prices. I Squared Capital followed with a slightly higher $1.45 per share offer days later. However, oOh!media's board unanimously determined neither proposal adequately reflected the company's intrinsic value, with outgoing chair Tony Faure telling shareholders at the AGM that the offers lacked sufficient depth in due diligence on revised terms.
If Oaktree advances to a formal offer stage, it would join an already crowded field managed by heavyweight advisers: PEP is Macquarie-advised while I Squared Capital retains JPMorgan. Investment bank Jefferies is also understood to be advising a potential bidder with previous Nine relationships, suggesting additional bidders may yet materialize before the process concludes.
The shareholder register has simultaneously come into focus, with a Form 603 disclosure revealing that TAL Dai-ichi Life Australia, Daiichi Life Group, and related entities hold a deemed 6.20% relevant interest in oOh!media. This concentrated stake adds another dimension to the process, as major shareholders' positions will influence board dynamics and any future offer evaluation.
The expanded competitive pressure from multiple tier-one private equity sponsors suggests the final bid price may ultimately exceed the board's stated intrinsic value threshold, particularly if Oaktree and other circling parties commit to formal offers.
The competitive landscape has already intensified with two rejected proposals on the table. Pacific Equity Partners submitted a $1.40 per share bid valuing the company at approximately $750 million, representing a 65% premium to prevailing market prices. I Squared Capital followed with a slightly higher $1.45 per share offer days later. However, oOh!media's board unanimously determined neither proposal adequately reflected the company's intrinsic value, with outgoing chair Tony Faure telling shareholders at the AGM that the offers lacked sufficient depth in due diligence on revised terms.
If Oaktree advances to a formal offer stage, it would join an already crowded field managed by heavyweight advisers: PEP is Macquarie-advised while I Squared Capital retains JPMorgan. Investment bank Jefferies is also understood to be advising a potential bidder with previous Nine relationships, suggesting additional bidders may yet materialize before the process concludes.
The shareholder register has simultaneously come into focus, with a Form 603 disclosure revealing that TAL Dai-ichi Life Australia, Daiichi Life Group, and related entities hold a deemed 6.20% relevant interest in oOh!media. This concentrated stake adds another dimension to the process, as major shareholders' positions will influence board dynamics and any future offer evaluation.
The expanded competitive pressure from multiple tier-one private equity sponsors suggests the final bid price may ultimately exceed the board's stated intrinsic value threshold, particularly if Oaktree and other circling parties commit to formal offers.
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