The Federal Court of Australia has today approved the Scheme of Arrangement under which Outdoor Media Operations Pty Ltd (Outdoor Media Operations), a company owned by the CHAMP III Funds, will acquire all the remaining shares of oOh!media Group Limited (oOh!media).
The Federal Court decision was the final approval required before all remaining oOh!media shares are transferred to Outdoor Media Operations (expected to take place on 15 March 2012) for either a cash consideration of $0.325, or a mixed consideration of $0.10 cash and one class B share in Outdoor Media Investments Limited, for each remaining oOh! Share held as at 7.00 pm on the record date for the scheme, depending on the elections made by oOh! Shareholders and subject to the Minimum Scrip Number for the mixed consideration being satisfied as 7.00 pm on the record date (expected to be 8 March 2012).
The Federal Court approval comes on the same day that oOh!media announced its results for the year to 31 December 2011 with revenue increasing by 9% to $119.2 million, a 5% increase in its underlying EBITDA to $22.3 million and underlying profit before tax up 25% to $14 million.
CHAMP Director, Darren Smorgon, said: We welcome the approval by 99.99% of shareholders on Monday and the Federal Court today to enable this investment to go ahead.
Today’s results clearly demonstrate the strength of oOh!media. We believe there are substantial opportunities to accelerate the growth of the business and we will be supporting Brendon and his strong management team to realise those opportunities.
Chief Executive Officer of oOh!media, Brendon Cook, said: For ten consecutive years we have delivered growth year on year and once again we have outperformed the out-of-home industry by delivering a 9% revenue increase, compared to a 3.4% industry revenue growth for 2011.
Our positive results come down to the tremendous team of people that we have, the ongoing confidence and support of our clients, and the quality and continued expansion of the advertising assets we can offer them, both organically and through targeted strategic acquisitions in recent times.
CHAMP’s investment puts us in a stronger position to grow our core products including metropolitan big billboards, regional big billboards, retail and experiential marketing and invest in new areas such as interactive technology that will further extend the service and the products that our team is able to offer to our clients.