CHAMP PE-owned oOh! Media targets $141m Australia IPO

The company will sell 86.1 million shares at A$1.93 apiece, which translates into an enterprise valuation of A$365.5 million. The vast majority of the offering comprises new shares, with existing shareholders - primarily management - will realize proceeds of A$2.6 million. Most of the proceeds will be used to repay debt.

CHAMP currently owns 75.7% of oOh! Media; and neither it nor WPP, which has a 20.3% stake, will sell any shares via the offering. Their holdings will subsequently be diluted to 32.3% and 8.6%, respectively. Their shares will be held in escrow until the end of 2015, although up to 25% could be released early, subject to the company hitting certain performance milestones.

Outdoor Media Operations, a wholly-owned subsidiary of CHAMP's third buyout fund, won board approval for the A$162 million privatization of oOh! Media in late 2011 and the company ceased trading the following March. The private equity firm was said to have secured A$130 million in debt financing for the deal.

Later in 2012, oOh! Media agreed to buy Eye Corp, Ten Network Holdings' outdoor advertising business, for A$113 million. Ten Network will receive A$15 million from the IPO proceeds as a deferred payment for Eye Corp.

Founded in 1989 by current CEO Brendon Cook as a site representation business, oOh! Media claims to be Australia's largest out-of-home media company. It has a 34% revenue share of the country's A$544 million out-of-home advertising industry and a market leading position in each of its key divisions.

The company generates most of its income from the sale of advertising space across a portfolio of leased sites. It has over 4,000 large format roadside billboards in metropolitan and regional areas; more than 13,000 static and digital displays in retail precincts; over 2,000 displays across 10 airports; and 6,200 displays in locations such as cafes, university campuses, bars and sporting stadia.

Pro forma revenue came to A$243.5 million in the 2013 calendar year, up from A$236.8 million in 2012. EBITDA rose from A$29.3 million to A$33 million over the same period, while net profit fell from A$9.7 million to A$5.6 million. The company projects revenue of A$258.2 million for the 2014 calendar year, with A$40.3 million in EBITA and A$17.5 million in net profit.

Last month, APN Outdoor, a rival Australian outdoor advertising business, raised A$329.3 million through an IPO and then saw its shares jump 4% on debut. The listing facilitated a partial exit for Quadrant Private Equity.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Exits
• Australasia
• Media
• Buyout
• CHAMP Private Equity
• Exit
• IPO
• Media
• Australia