Asx media company oOh!media Ltd (ASX: OML) has fielded its second takeover in as many weeks, with I Squared Capital offering to buy the company for $1.45 per share in cash.
This follows Pacific Equity Partners offering to buy the company for $1.40 per share in late April.
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Shares trading higher
Shareholders who bought in at recent lows below $1 will be happy. Meanwhile, for longer term holders, the offers are well below levels reached in October last year, with the stock then trading above $1.80.
oOh!media shares were changing hands for $1.32 on Monday morning, up 5.4%.
oOh!media's board said the second takeover offer was, similar to the PEP offer, non-binding and conditionals.
They added:
The ISQ proposal is subject to a number of key conditions broadly consistent with those relating to the PEP proposal, including the satisfactory completion of due diligence by ISQ and entry into binding transaction documentation on acceptable terms. The ISQ offer price is also subject to an adjustment under which the offer price will be reduced by the amount of any future dividends or other distributions paid to shareholders. The Board of Directors of oOh!media Limited (Board) has considered both proposals in conjunction with its advisers and has unanimously determined that neither proposal adequately reflects the intrinsic value of oOh!. The Board has informed both PEP and ISQ that it does not intend to recommend to shareholders any formal binding offer at or below the value of their respective non‑binding indicative proposals.
While the board does not think either bid represents good value for shareholders, they said that they would allow both parties, "access to a limited amount of due diligence information to enable each party to assess whether it is able to put forward a revised proposal that may be capable of the board's recommendation''.
More than two bids possible
They also hinted that more bids may be in the offing:
oOh! is also engaging with certain other parties and may potentially receive change of control proposals from one or more of those parties and potentially other parties. oOh! is open to engaging with all parties to assess whether any proposal may emerge that is capable of being recommended by the board.
The board said it had also decided to pause its share buyback while the corporate activity ran its course.
oOh!media is scheduled to hold its annual general meeting on May 14.
The company is valued at $665.6 million.
