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

Australian notes and coins symbolising dividends.
Communication Shares

Everything you need to know about the Telstra dividend

Owners of Telstra shares can look forward to another good dividend.

Read more »

A young woman in a red polka-dot dress holds an old-fashioned green telephone set in one hand and raises the phone to her ear.
Earnings Results

Telstra share price drops 5% on FY26 report despite big dividend increase

Telstra will pay a final dividend of 10.5 cents per share for FY26.

Read more »

Media journalists on the desk reporting the news live.
Communication Shares

Southern Cross Media Group posts FY26 results

Southern Cross Media Group’s FY26 results highlight challenging market conditions, digital growth, and an expanded cost-saving push amid merger integration.

Read more »

Businesswoman holds hand out to shake.
Communication Shares

oOh!media receives takeover offer

oOh!media shares are in focus as the board backs a $1.70 per share takeover by I Squared Capital.

Read more »

Male hands holding Australian dollar banknotes, symbolising dividends.
Communication Shares

Here's the dividend forecast out to 2027 for Telstra shares

Here are the telco’s dividend projections for the next couple of years.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Communication Shares

Spark New Zealand launches strategic review of Digital Services and updates structure

Spark New Zealand is restructuring and reviewing its Digital Services business while holding FY26 guidance steady.

Read more »

A woman in her late 30s holds her hands out either side with the palms up as if indicating she doesn't know the answer to a question.
Communication Shares

Can TPG Telecom shares rebound from an all-time low?

The stock crashed late last year after it traded ex-dividend for a very large capital return to shareholders.

Read more »

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 »