PE-owned oOh!Media tipped to buy Ten’s outdoor ad business
Australia’s Ten Network Holdings has entered into exclusive negotiations with a bidder for its outdoor advertising business, Eye Corp. The company didn’t disclose the identity of the bidder, but it is thought to be oOh!Media Group, which was bought by CHAMP Private Equity last December. APN Outdoor, a joint venture between Quadrant Private Equity and APN News & Media, ruled itself out of the running last week, as did French company JC Decaux.
According to The Australian, Ten and oOh!Media are discussing a deal worth A$125-150 million ($124-148 million). Ten is receiving financial and legal advice from UBS and Clayton Utz, respectively, while Redbridge Grant Samuel is working with CHAMP Private Equity. Australia's Competition & Consumer Commission may decide to investigate any merger agreement.
The sale of Ten's outdoor advertising business has been expected since the company announced a strategic review of the business in March. Eye Corp's EBITDA fell 35.6% year-on-year in the first half of 2012 to A$7.1 million, having been affected by difficult trading conditions in the pre-Christmas outdoor advertising market in Australia and New Zealand. Ten's television business posted a 40.2% decline in profit to A$56.8 million.
Overall, the company saw its EBITDA fall by 39.7% over the period, to A$63.9 million.
CHAMP Private Equity's acquisition of oOh!Media and Quadrant's arrangement with APN - an A$272 million deal announced in February - point to a wider consolidation of the Australian outdoor advertising industry. This is being driven by the amount of capital required to maintain sites and the duplication of supporting infrastructure among mid-sized players.
More on Australasia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.