French-outdoor signage giant JCDecaux is buying APN for $1.2bn, a cash price of $6.70 per share.
It follows from oOh!media yesterday purchasing the market’s third biggest player by revenue, Adshel, the outdoor division of Here There & Everywhere (HT&E), for $570m, with APN having a similar bid for the company rejected.
JCDecaux’s purchase of APN was contingent on APN not acquiring Adshel, freeing up the deal to be completed following the announcement from oOh! on its successful bid yesterday.
Doug Flynn, chairman, APN, says, “The JCDecaux scheme is an attractive, all-cash transaction. The APN Outdoor board has unanimously concluded that it represents a compelling transaction for shareholders.
James Warburton, CEO, managing director, APN, says, “The recommended acquisition of APN by JCDecaux represents an excellent outcome for our shareholders, staff and partners.
“The proposal is testament to the position the APN holds in the Australian and New Zealand media sectors and our recent strong performance, winning and retaining key new contracts.”
Jean-François Decaux, Co-Chief Executive Officer, JCDecaux, said: “This acquisition is a significant milestone in JCDecaux’s history in Australia, which is the 7th largest advertising market worldwide, where we have been growing organically since 2000.
“APN Outdoor is very complementary to our existing street furniture assets and through this acquisition, JCDecaux will be attractively positioned to provide a compelling proposition to compete more effectively in the Australian media market where Out of Home accounts for 6 per cent of advertising spend, of which almost 50 per cent is digital. Finally, we are delighted to enter New Zealand, a fast-growing market.”
In November, JCDecaux Australia won both the seven-year exclusive contract for Melbourne’s Yarra Trams portfolio of outdoor advertising assets, and a 15 year renewal with Telstra.
JCDecaux Australia also wrapped up its acquisition of Adbooth in December, acquiring the remaining 50 per cent of shares in the company.
The deal needs to be cleared by the Australian Competition and Consumer Commission, the Australian Foreign Investment Review Board, and potentially the New Zealand Overseas Investment Office, with the transaction expected to be completed by end 2018.
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