OOh!Media (OML AU): PEP's Opportunistic Tilt

• OOh!Media (OML AU), the No.1 player in Australia’s outdoor advertising, has announced an NBIO, by way of a Scheme, from PE-outfit Pacific Equity Partners (PEP).

• Subject to completion of satisfactory DD, PEP is offering A$1.40/share, a 65% premium to last close. Apart from shareholder approval, the transaction requires FIRB and NZ’s OIO signing off.

• OML’s share price was down 35% YTD. Tony Faure recently stepped down as Chair. CEO James Taylor assumed the role just five months ago. Yes, timing is opportunistic.

OML is not very liquid - look away now if this is not your thing.

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The Trade:

• Given the share price weakness YTD, management change, and that OML is one of the largest/last pure-play, listed OOH specialists, my bet is OML’s board reject terms.

• PEP needs to bump.

• Trading at A$1.20/share, up 40.6% as I type. I’d be a small buyer around here. I wouldn’t chase it. Load up if this materially pulls back.

This insight is labelled bullish as I’m not bearish here. (Predicated on PEP bumping)