The ACCC has rescheduled the announcement for its decision on the proposed oOh! Media and APN Outdoor merger to May 4, originally scheduled for March 16.
On the new date it will either give the go ahead or release a statement of issues. The ACCC says it has extended the date to enable further information to be provided to and considered by the commission in assessing the merger.
As a result, the companies have agreed to an extension of the scheme timetable under the Scheme Implementation Deed and oOh! now expects to dispatch its scheme booklet to shareholders in late May, with a vote on the merger to be held in late June, and implementation in July.
The media giants will form a $1.6bn company if successful. oOh! Media has a network of 5,000 digital signs and an interactive network of 6,500 signs with QR codes or near field communication capabilities. APN claims it is the largest supplier of billboards in Australia’s most affluent areas.
Both parties continue to believe strongly in the long-term growth and value creation opportunities the merger would offer to a broad range of stakeholders including the benefits of the teams within both businesses.
[Related: oOh! and APN to merge]
APN and oOh! says they remains confident in their position that the merger does not result in a substantial lessening on competition in a rapidly changing media landscape.
Once the group merges it will have revenues of $1.6bn, it is expected to generate value accretion for both sets of shareholders, driven in part by cost synergies of at least $20m to be realised on a run-rate basis within two years following implementation of the merger.
As outlined to shareholders, the two companies propose to merge via an all scrip scheme of arrangement, with OML shareholders receiving a 0.83 APO shares for every one OML share they own. The merged group will have a pro forma market capitalisation of approximately $1.8bn.
Furthermore, a $400m debt facility has been confirmed to support future growth for the merged group.
oOh! Media recorded a 20 per cent increase in revenue to $336.1m for the year ending December 2016. APN Outdoor’s revenue grew by 10 per cent to $330.9m with its digital revenue growing 50 per cent. Both company’s results can be attributed to the digital growth in outdoor media.