The Motley Fool

APN Outdoor Group Ltd (ASX:APO) receives $1.1 billion bid from JCDecaux

The APN Outdoor Group Ltd (ASX: APO) share price could be in for a decent jump this morning after the company received a $1.1 billion bid from French outdoor advertising giant JCDecaux Group.

JCDecaux announced yesterday that it had submitted an indicative and non-binding proposal for all of APN Outdoor’s shares for $6.52 per share in cash. This offer represents an 11% premium to the closing price yesterday.

The French business justified bidding for APN Outdoor by saying that it would be complementary to its existing out-of-home media assets in Australia, which are primarily in the ‘street furniture’ segment.

JCDecaux has been operating in Australia since the 2000 Olympic Games and this bid could result in the French advertising giant becoming the largest outdoor advertiser in Australia.

Goldman Sachs is acting as JCDecaux’s financial advisor for this bid. The offer is subject to all the usual conditions like due diligence, ACCC approval and FIRB approval.

AFR sources believe that APN Outdoor will reject the offer and it will hire Morgan Stanley as part of the defence team.

APN Outdoor has been a strong performer for shareholders over the past few months. Since mid-March it has gone up by 43% before any gains today.

Foolish takeaway

I’m not sure that a 10% premium to yesterday’s closing price values highly enough the increase in earnings that APN Outdoor could experience after it has finished changing its boards from static to digital. I’d want more if I were an APN Outdoor shareholder. Time will tell if a higher bid comes in.

However, if I did own APN Outdoor shares and I sold them at some point, I’d consider re-investing the money back into these growth shares.

4 Stocks for Building Wealth

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

Motley Fool contributor Tristan Harrison 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.