MENU

The HT&E Ltd (ASX: HT1) share price surges 6% higher on competing bids for Adshel

Shares in advertising and media company HT&E Ltd (ASX: HT1) climbed 6% higher on Tuesday to $2.42, their highest price since September.

The price run follows media speculation – later confirmed by market updates from the companies involved – that oOh!Media Ltd (ASX: OML) and APN Outdoor Group Ltd (ASX: APO) launched competing bids to acquire Adshel, HT&E’s outdoor advertising business.

The series of announcements started Monday morning, with oOh!Media responding to media speculation that it had submitted a revised offer for Adshel following the rejection of a first proposal formulated in April. The company confirmed having raised its offer to $470 million.

In the space of three hours, HT&E Limited announced it had received multiple offers and oOH!Media’s wasn’t the most attractive. Negotiations with oOH!Media halted when the bidder turned down HT&E’s offer to provide further due diligence on a non-exclusive basis.

The identity of the second bidder was revealed a few hours later, when APN Outdoor Group confirmed it had submitted a non-binding proposal for Adshel. APN gave more detail on Tuesday, specifying the offer amounts to $500 million.

HT&E stated the board is willing to engage in any indicative proposal that delivers compelling value to shareholders. However, there is no certainty that any proposal will result in a binding offer capable of attracting support from the board, and HT&E might retain its outdoor business. The company appointed financial advisers CLSA Corporate Finance and Credit Suisse to assist in reviewing the proposals.

With so much interest around Adshel, both bidders fell on Tuesday’s trade. At the time of writing, Ooh!Media is down 2% to $5.34, and APN is down 3% to $5.14.

Foolish Takeaway

This takeover fever is good news for HT&E shareholders, as long as it keeps the stock buoying. However, I think they would be better off without divestments.

Competition is tough in the media sector since the advent of online advertising, and diversification and synergies are key to survival. HT&E is a diversified media outlet, and its radio network benefits from its outdoor advertising. Selling one could damage the other.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.