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Ooh!Media buying Adshel as Australia billboard assets M&A heats up (Reuters) - Australian advertiser Ooh!Media Ltd ( OML.AX ) is scooping up bus stop advertising business Adshel for $424 million after outbidding rival suitor APN Outdoor ( APO.AX ) which has itself received a takeover offer from French advertiser JCDecaux ( JCDX.PA ). The deals rush is aimed at dominance in Australia’s lucrative outdoor ad market where four firms control 97 percent of the A$900 million ($660 million) industry, with digital ad boards dramatically lifting their earnings potential. The M&A activity, however, is drawing close scrutiny from regulators. Ooh!Media said on Monday it has struck a deal with media company HT&E Limited ( HT1.AX ) to buy Adshel for a sweetened A$570 million ($424.02 million), including debt. “The digitisation opportunity in the Adshel business is expected to provide a significant avenue for further growth beyond what has been achieved to date,” Ooh!Media’s chief executive Brendon Cook said in a statement. APN subsequently halted trading in its shares, citing a pending update on the JCDecaux takeover offer. The Paris-based firm said in a statement that it continues to be in discussions with APN on its offer, without giving any more details. APN had sweetened its offer for Adshel on Friday by 8 percent to A$540 million including debt, substantially higher than Ooh!Media’s initial A$470 million proposal made in April. JCDecaux’s A$1.09 billion offer for APN on Thursday had elicited a frosty response from the target, which had responded by saying the premium offered was modest and that it was actively pursuing Adshel. JCDecaux had made its offer conditional upon APN ditching its bid for Adshel, a direct competitor of the French firm. Hastening the shakeout in Australia’s outdoor ad market is the competition watchdog, which last year blocked a merger between APN and Ooh!Media.
For the original version including any supplementary images or video, visit https://www.reuters.com/article/us-apn-outdoor-grp-m-a-ooh-media/oohmedia-buying-adshel-as-australia-billboard-assets-ma-heats-up-idUSKBN1JL00J
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