Australian digital Out of Home business QMS Media (ASX:QMS) has entered into a Scheme Implementation Deed (SID) with an entity controlled by Quadrant Private Equity and its institutional partners (together, Quadrant), under which Quadrant acquires 100 per cent of QMS Media’s shares.
The deal is an all cash offer at $1.22.
Subject to QMS Board approval, QMS shareholders will also be entitled to a final dividend of up to $0.013 for the financial year ending 31 December 2019.
The scheme consideration values QMS Media’s equity at about $420.6 million and an enterprise value of $571.6 million.
The QMS Media Board unanimously recommends the Quadrant scheme offer to shareholders.
QMS Media Chairman Wayne Stevenson said, “Having fully considered a range of strategic alternatives in relation to some or all parts of the QMS business, including the receipt of an unsolicited proposal from Quadrant, the board believes this offer allows QMS shareholders to realise significant value for their shares.
“Since QMS Media’s initial public offering in 2015, QMS Media has delivered significant shareholder value, as illustrated by the increase from its IPO price of $0.65 to the Scheme Consideration of $1.22”.
QMS Media CEO Barclay Nettlefold said the recommended acquisition of QMS by Quadrant represents an excellent outcome for shareholders, partners and employees.
“It is a testament to our sustained growth in a challenging market, and our continued market leading digital revenue contribution, led by our strong and experienced executive management team,” he mentioned.
Quadrant private equity partner Jonathon Pearce said he was delighted to have an opportunity to partner with Barclay and his experienced team.
“QMS has a proven track record of delivering sustainable growth. Under Barclay’s continued leadership and with Quadrant providing additional capital, we believe the business will continue to grow and deliver innovative market leading solutions to customers across the Australia & New Zealand Media and Global Sports divisions,” he said.
The deal is subject to certain conditions, approvals and the continuing engagement of QMS personal.
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