(Alliance News) - Ocean Outdoor Ltd on Tuesday announced it has agreed to a takeover offer from Atoll Bidco Ltd, a subsidiary of New York-based investment firm Atairos Group Inc.
The deal values the digital out-of-home advertising firm's equity at about USD580 million, Ocean said.
Under the agreement, Ocean will merge with Atoll Merger Sub Ltd, a subsidiary of Atoll Bidco. Ocean shareholders will receive USD10.40 in cash per share. This is a premium of 22% to USD8.53, the six-month average price of Ocean shares up to November 12 last year. This was just prior to Ocean's announcement of a strategic review that would include a potential sale of the company.
Ocean Outdoor shares were 1.5% higher at USD10.30 each on Tuesday morning.
Ocean noted that it isn't subject to the jurisdiction of the UK Takeover Panel or code, so it will not receive the benefit of takeover protections provided by the code. Though it has its headquarters in London, Ocean is incorporated in the British Virgin Islands.
However, the company said its board is convinced the acquisition is in the best interest of Ocean and its shareholders. "The Atairos cash offer represents an opportunity for current shareholders to realise an attractive and certain value for their investment, reflecting the strength of Ocean's high quality business and its future prospects" said Chief Executive Officer Tim Bleakley.
Also on Tuesday, Ocean published its 2021 results. Pretax profit narrowed to GBP30.3 million from GBP156.5 million in 2020. Revenue rose 44% to GBP124.4 million from GBP86.2 million.
In 2022, "trading has started very strongly", despite Covid restrictions due to Omicron in the leisure and hospitality industries, the firm said. It expects revenue in 2022 to be higher than in 2019, seeing a return of audiences.
By Tom Budszus; tombudszus@alliancenews.com
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