Outdoor advertising giant oOh!media (ASX: OML) has confirmed it is fielding conditional non-binding indicative offers from Bain Capital and other unnamed financial sponsors, intensifying a takeover contest that now involves at least three private equity bidders circling the company.
The disclosure today comes a month after I Squared Capital lobbed an indicative bid of $1.45 per share, valuing the group at $766 million, and six weeks after Pacific Equity Partners (PEP) opened the contest with a $1.40 per share approach on 29 April.
oOh!media says the Bain Capital proposal and those from other sponsors are "consistent with the terms of the I Squared Capital proposal", suggesting the offers sit in the vicinity of $1.45 per share.
The precise dollar value of Bain's bid has not been disclosed.
The oOh!media board has unanimously rejected both the PEP and I Squared offers as failing to adequately reflect the company's intrinsic value.
However, the board granted limited due diligence access to both parties and signalled its openness to engaging with additional suitors, a stance that has now drawn Bain Capital and potentially further bidders into the fray.
Bain Capital is understood to have submitted its proposal two weeks ago with the global private equity firm's Australian dealmakers Mike Murphy and Charlie Lawson reported to be leading the approach.
oOh!media operates Australia and New Zealand's largest network of out-of-home advertising assets, spanning roadside billboards, retail signage, street furniture, airport displays and digital screens.
The company listed on the ASX in 2014 and has grown through a string of acquisitions, most notably its 2018 merger with Adshel.
The bidding war arrives at a time of strong operational performance with the company last month reporting first-quarter revenue growth of 7 per cent in Australia, and 4 per cent for the group, slightly ahead of February projection. The second quarter's growth is running at a similar pace.
At the company's annual general meeting in May, outgoing chair Tony Faure maintained that neither the PEP nor I Squared proposals reflect the company's intrinsic value, a position the board reiterated in its response to the initial approaches.
CEO James Taylor has pointed to the company's strategy of driving operational savings and reinvesting in its digital asset network as underpinning oOh!media's earnings trajectory.
The growing number of suitors underscores the appeal of Australia's out-of-home advertising sector to global private capital.
The sector has benefited from a structural shift toward digital formats, which command higher yields and allow dynamic, data-driven ad placement.
Nine Entertainment's $420 million acquisition of QMS Media in 2020 highlighted the strategic value placed on premium outdoor assets.
All proposals remain conditional, non-binding and subject to due diligence, financing and board recommendation. oOh!media says it will continue to engage with interested parties and update the market as required.
Shares in oOh!media closed almost 10 per cent higher today at $1.375 with more than 4.3 million shares changing hands.
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