How high could the bidding war for this ASX 300 company go after a third takeover suitor emerges?

The company says the current bids on the table are too low.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in oOh!Media Ltd (ASX: OML) are trading up more than 8% after the company confirmed that a third potential takeover bidder was running the ruler over the company.

An article in the Australian Financial Review on Tuesday morning said that private equity company Bain Capital had made a non-binding offer to buy oOh!media about two weeks ago, and was still interested in an acquisition.

A man with a wide, eager smile on his face holds up three fingers.

Image source: Getty Images

Another bidder in the mix

oOh!Media confirmed in a statement to the ASX on Tuesday that this was correct.

It added:

As disclosed to the market on 11 May 2026, in addition to progressing discussions with Pacific Equity Partners and I Squared Capital, oOh! is engaging with other parties regarding a potential change of control transaction. oOh! has received conditional non-binding indicative offers from Bain Capital and other financial sponsors which are consistent with the terms of the I Squared Capital proposal. oOh! does not intend to comment further on press speculation regarding change of control proposals. oOh! will continue to update the market in accordance with its continuous disclosure obligations.

oOh!Media shares were up 8.4% on the news to $1.36, which is still a discount to the $1.45 per share offered by I Squared Capital and the $1.40 per share from Pacific Equity Partners.

Bids priced too cheaply

oOH!Media Chair Tony Faure told the company's annual general meeting in May that "the Board, together with our advisers, has considered and unanimously determined that they do not adequately reflect the intrinsic value of oOh!".

He added:

However, we are prepared to engage with all parties to assess whether any proposal may emerge that is capable of being recommended by the Board. oOh! will provide parties with access to a limited amount of due diligence information to enable them to assess revised proposals that may be capable of the Board's recommendation. We are committed to moving at pace as we evaluate the offers, with a firm focus on achieving the best outcome for shareholders.  

Company operations performing well

Also in May, the company said it was trading strongly and expected first-quarter revenue growth of 7% in Australia and 4% for the group, slightly ahead of projections from February.

oOh!Media said at the time that its Operational Excellence program and its exit from retail media delivered a 9% headcount reduction and $12 million in annualised savings from FY27.

The company said on the downside that first-half gross margins would be softer than anticipated.

oOh!Media Managing Director James Taylor said:

The Out of Home sector continues to benefit from strong structural growth, and we are executing our strategy to cement oOh!'s market leadership. The launch of MOVE is a growth catalyst, clearly demonstrating the superior quality and unmatched scale of our network to advertisers. Since February we have identified $12 million in annualised FY26 run rate pre-tax cash savings and an array of related operational benefits. This unlocks further value for our customers and shareholders. While we note some advertiser uncertainty given the broader macro environment, we are pleased with our overall outlook and look forward to updating shareholders at this morning's AGM.

oOh!Media is valued at $662.9 million.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Communication Shares

A couple stares at the tv in shock, with the man holding the remote up ready to press a button.
Communication Shares

Why this beaten-down ASX media stock is rising today

A major rights deal has this ASX media stock moving higher.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Communication Shares

If I invest $8,000 in Telstra shares, how much passive income will I receive in 2027?

Telstra is now providing investors with pleasing dividend stability.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, and holding a mobile phone in his other hand.
Communication Shares

Should I invest $5,000 in Telstra shares in July?

Telstra shares have slumped recently. Will they keep falling, or is an upside ahead?

Read more »

Two male ASX investors and executives wearing dark coloured suits sit at a table holding their mobile phones discussing the highest trading ASX 200 shares today
Communication Shares

Why Telstra shares could be a top ASX buy for the new financial year

The appeal is simple: essential services, network scale, and a dividend profile that has become easier to understand.

Read more »

A man wearing a colourful shirt holds an old fashioned phone to his ear with a look of curiosity on his face as though he is pondering the answer to a question.
Communication Shares

Here's what brokers tip for Telstra shares over the next 12 months

Have Telstra shares now reached fair value?

Read more »

Young woman using computer laptop smiling in love showing heart symbol and shape with hands. as she switches from a big telco to Aussie Broadband which is capturing more market share
Communication Shares

Should I buy Telstra shares for passive income?

And find out what brokers are tipping for the telco over the next 12 months.

Read more »

A happy man looks at his smart phone, indicating a share price rise for ASX tech shares
Communication Shares

5 years ago, $10,000 bought 2,801 Telstra shares. But how many would it buy now?

Telstra shareholders have seen very positive returns.

Read more »

A picture of a satellite orbiting the earth.
Communication Shares

Could Elon Musk's SpaceX take a bite out of Telstra shares?

Telstra shareholders are keeping an eye on Elon Musk’s newly listed US$2.1 trillion SpaceX.

Read more »