Outdoor advertiser QMS Media says the New Zealand Overseas Investment Office has approved a proposal by BidCo - an entity controlled by Australian private equity firm Quadrant – to acquire QMS under a deal announced in October 2019. QMS Media specialises in digital and static billboards, street furniture, and sport, airport and transit media.
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| QMS Media sports stadium signage |
“QMS Media Limited (ASX:QMS) is pleased to confirm that the New Zealand Overseas Investment Office has consented to Shelley BidCo’s acquisition of 100% of the shares in QMS, subject to certain conditions, which are acceptable to BidCo,” QMS said in a statement to the ASX on Thursday.
The proposal will now go before a meeting of QMS shareholders in Melbourne on Thursday February 6. “QMS' Board of Directors continues to unanimously recommend that QMS shareholders vote in favour of the Scheme,” said the statement.
QMS last year entered into a Scheme Implementation Deed with Quadrant under which Quadrant will acquire 100% of the issued share capital of QMS Media for a cash price of $1.22 per share, by way of a court-approved scheme of arrangement. The Scheme Consideration of $1.22 per share values QMS Media equity at approximately $420.6 million, and at an enterprise value of $571.6 million.
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Proposed acquisition "represents an excellent
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“The recommended acquisition of QMS by Quadrant represents an excellent outcome for our shareholders, partners and employees,” QMS Media CEO Barclay Nettlefold said at the time. “It is a testament to our sustained growth in a challenging market, and our continued market leading digital revenue contribution, led by our strong and experienced executive management team.”
Quadrant Private Equity partner Jonathon Pearce added: “QMS has a proven track record of delivering sustainable growth. Under Barclay’s continued leadership and with Quadrant providing additional capital, we believe the business will continue to grow and deliver innovative market leading solutions to customers across the Australia & New Zealand Media and Global Sports divisions.”
The shareholders meeting will be held at 10.00am on Thursday 6 February 2020 at The RACV Club, 501 Bourke Street, Melbourne VIC 3000. A Rollover Shareholder Scheme Meeting will be held immediately afterwards at the same venue.
QMS shareholders can obtain further information by calling the QMS Shareholder Information Line on 1300 069 339 (within Australia) or +61 3 9415 4275 (outside Australia) between 8.30am and 5.00pm (Melbourne time) on business days.
In December 2019, QMS released a statement to address claims its facing a $200 million lawsuit by John Singleton’s outdoor advertising business Manboom over lost revenue following the alleged breach of a 2014 cooperation agreement.
QMS is a leading outdoor media company in Australia, New Zealand and Indonesia, specializing in digital and static billboards, street furniture, and sport, airport and transit media. The company has three business segments - QMS Australia, Mediaworks and QMS Sport.
Quadrant Private Equity, established in Sydney in 1996, has raised in excess of $5.1 billion and 10 funds since its inception, completing 71 investments across sectors including retail, healthcare, media, consumer foods and financial services. Its investors include Australian and global superannuation funds, investment funds and sovereign wealth funds.
