The Board and management of United Kingdom based Out of Home company Ocean Outdoor announced, in a trading update call yesterday, that the publicly held company may be put up for sale.  The company is considering the sale as the board and management consider their assets to be undervalued.

The company says that it has emerged from the pandemic “in a position of strength with net cash on its balance sheet”, adding that it is “well positioned to benefit from the significant recovery in OOH advertising that is under way”.

Ocean Outdoor listed on the UK stock market in January 2019, with its market value rising about 10 per cent to approximately $472 million since then. The company says that this is an undervaluation, citing “technical trading challenges” which it says are “unrelated to Ocean’s strong business fundamentals and intrinsic value”.

The company’s value has not increased as much as expected since its stock market listing, especially given its numerous acquisitions since 2019. Ocean Outdoor has grown to cover sites in over 350 cities across the UK, Germany, Netherlands, Norway, Denmark, Finland and Sweden.

Its sites include the BFI IMAX and Piccadilly Lights in London. Ocean Outdoor also works with a range of companies including BT Sport, Canary Wharf Group and Landsec, among others. In yesterday’s announcement, the company stated that it expects full-year revenue of between $150-$160 million in 2021, which would represent year-on-year growth of 33-39%.

Insider’s take: In Ocean Outdoor you have a substantial group of outdoor assets with many iconic locations.  With the number of new equity players we have seen in the US market, we would not be surprised if someone stepped in and took the Company private.

Insider normally sticks more to North America, but this is an interesting opportunity and well worth following.  We will keep you posted.

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