APN Outdoor Group and oOh!media to merge, creating a leading, diversified media group

APN Outdoor Group Limited  and oOh!media Limited have announced that the companies have entered into a Scheme Implementation Deed under which the two companies will merge.

A joint statement issued by the companies said the transaction will create a leading, diversified out-of-home and digital media group in Australia and New Zealand with a pro forma market capitalisation of approximately $1.6 billion. On completion of the Transaction, existing APN Outdoor and oOh!media shareholders will own 55% and 45% respectively of the merged group.

The statement said the transaction combines two exciting out-of-home companies with complementary, long term and diversified assets across classic, digital and online platforms, including an attractive and industry-leading portfolio of digital assets. The Transaction creates a service offering across key out-of-home formats, including roadside billboards, transit, rail, airports, retail, offices and other bespoke venue environments, and will enable the merged group to benefit from the digital and classic out-of-home capabilities of both businesses across the enlarged portfolio.

The merged group will have an enhanced geographic presence across Australia and New Zealand with 8,985 digital and 63,200 classic screens and panels across metropolitan and regional locations.

Doug Flynn, Chairman of APN Outdoor said: “The mergerof APN Outdoor and oOh!media is a compelling opportunity for all shareholders. The businesses bring together complementary asset portfolios across key formats in metropolitan and regional markets to create a leading and diversified out-of-home and digital online media group in Australia and New Zealand. We are excited by the growth prospects presented by this merger .”

Michael Anderson, Chairman of oOh!media said: “Thecombination of these businesses will create an attractive media offering, supported by a passionate and experienced team. We believe the amount of cost synergies expected to be generated, and the resulting EPS accretion will create substantial value for both shareholder groups. We are pleased that the enhanced balance sheet strength and financial scale, together with increased funding opportunities, will support the Merged Group’s ability to pursue future growth and digitisation opportunities .”

Subject to the approval of oOh!media shareholders and the other conditions of the Scheme being satisfied, the Scheme is expected to be implemented in April 2017.