oOh!media Puts Discounted Equity Raising Before Investors Following Trading Halt

oOh!media Puts Discounted Equity Raising Before Investors Following Trading Halt
B&T Magazine
By B&T Magazine



Last Friday oOh!Media went into a trading halt following a significant drop in share prices.

As with many businesses, the OOH company’s share price has taken a severe beating amid the CV-19 pandemic.

At the time, it was understood oOh! was considering capital raising to reduce its debt after the media company’s shares have been steadily sold off in the past month amid fluctuating economic conditions. oOh! had $355 million net debt at the end of last year.

And now, as reported on the AFR, the outdoor media company is putting forward discounted equity raising which would see its share more than double on issue.

It is understood over the weekend oOh! and its bankers at Macquarie Capital building support for a $167 million equity raising at 53c a share. This is a 37 per cent discount to the last close, and a 20 per cent discount to the theoretical ex-rights price.

According to the AFR, the deal put forward is split into a $39 million placement and $128 million entitlement offer.

The deal would see the outdoor play increase its total shares by 130 per cent by issuing 315 million new shares.

The discount coupled with the number of shares would see oOh! head towards recapitalisation.

Earlier this week, the oOh! withdrew its earnings guidance for the year amid uncertain market conditions around COVID-19.

Last week, an oOh!Media spokesperson told B&T the trading halt reflects discussions the company was having with its major shareholders.

At the time, the spokesperson stressed that capital raising is an option, but not the only option.

 

 




Please login with linkedin to comment

Brendon Cook oOh!Media

Latest News

Sydney Comedy Festival: Taking The City & Social Media By Storm
  • Media

Sydney Comedy Festival: Taking The City & Social Media By Storm

Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]

Global Marketers Descend For AANA’s RESET For Growth
  • Advertising

Global Marketers Descend For AANA’s RESET For Growth

The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA  Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]