Paris, June 20th, 2018 – JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announces that it has submitted an indicative and non-binding proposal to acquire 100% of APN Outdoor Group Limited share capital based on its current business assets, via a scheme of arrangement, for A$6.52 per share in cash representing a premium of 30.0% over the 6 months VWAP and corresponding to approximately A$1.1 billion / €0.7 billion (the Proposal).
Australia is the 7th largest advertising market worldwide, with a growing share of out-of-home advertising having now reached 6% of advertising spend, of which almost 50% is digital.
APN Outdoor Group Limited is a leading out-of-home media company in Australia that primarily operates in the large format billboard segment, as well as in the transit, rail and airport segments.
APN Outdoor would be complementary to JCDecaux’s existing out-of-home media assets in Australia, which are primarily in the street furniture segment. JCDecaux is one of the leading street furniture players in the Australian market, having recently won the advertising rights for Yarra Trams in Melbourne and Telstra under long-term contracts.
JCDecaux entered the Australian market with the street furniture contract of Sydney before the Olympic Games in 2000 and since then has been developing a strong outdoor advertising franchise in Australia on an organic basis. Today, JCDecaux has a large portfolio of premium assets in Australia’s largest metropolitan areas that would significantly enhance APN Outdoor’s existing network.
The Proposal is subject to due diligence, applicable regulatory approvals (e.g. Australian Competition and Consumer Commission and Foreign Investment Review Board) and other customary conditions. The Proposal is also conditional on entry into a definitive scheme implementation agreement between JCDecaux and APN Outdoor, under which APN Outdoor would put to its shareholders the contemplated scheme to implement the Proposal. It is not intended to constitute, and does not constitute, a proposal to make a takeover bid for the purposes of section 631 of the Corporations Act.
At this early stage, no agreement has been reached between the parties, and there is no certainty that the Proposal will result in any transaction.
Goldman Sachs is acting as JCDecaux’s financial advisor in relation to the Proposal.
Insider’s Take – The Australian out of home market is consolidating. This would be about $812 million U.S., if the parties agree to terms, and represents a cash offer that is a 30% premium to APN’s six-months volume weighted average price. With APN’s primary focus on digital and static billboards and JCDecaux’s transit focus, it looks like a strong combination. Also shows JCDecuax’s acquisition appetite and capabilities for strategic markets. How soon before they make a major play in the U.S.?
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