oOh!Media to pursue $64.5m capital raising to acquire ECN
oOh!Media will pursue a $64.5m capital raising to fund the acquisition of smaller rival Executive Channel International.
Outdoor advertising group oOh!Media will pursue a $64.5 million capital raising to fund the acquisition of smaller rival Executive Channel International (ECN).
The purchase of ECN, a digital out of home media group, for $68.5m will come through oOh!Media (OML) subsidiary Inlink Group.
“The acquisition will consolidate oOh!’s market leading position in the highly valuable CBD office segment,” the suitor’s chief executive Brendon Cook said.
“It is in line with oOh!’s strategy of driving engagement with audiences through a diversified portfolio of digital and classic screens in unmissable locations and will further enhance our digital market leadership.”
A fully underwritten institutional capital raising of $60m will be pursued by the ASX-listed oOh!Media alongside a $4.5m share purchase plan to existing retail shareholders.
A further $10.1m will be drawn from existing debt facilities to cover the acquisition and associated transaction costs.
The raising will come at $4.75 a share, a modest 2.9 per cent discount to its last traded price.
oOh!Media said it expected the deal to be earnings per share accretive from 2017.
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