Federal Court has approved private equity firm Quadrant’s deal to buy outdoor media company QMS Media for $420 million. The Scheme is scheduled to become legally effective tomorrow, Tuesday, 11 February 2020.
“QMS Media Limited (ASX:QMS) is pleased to announce that the Federal Court of Australia has today made orders approving the proposed scheme of arrangement between QMS and its shareholders, pursuant to which Shelley BidCo Pty Ltd (an entity controlled by Quadrant Private Equity) is to acquire 100% of the shares in QMS (Scheme),” the company said in a statement to the ASX on Monday, 10 February..
“QMS expects to lodge a copy of the Court orders approving the Scheme with the Australian Securities and Investments Commission on Tuesday, 11 February 2020, at which time the Scheme will become legally effective.”
The court order finally approving the sale follows last week’s shareholders meeting which voted overwhelmingly in favour of 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.
QMS now proposes to lodge the order of the court with the Australian Securities and Investments Commission on Tuesday, 11 February 2020, at which time the Scheme will become legally effective. This will be the last day that QMS shares will trade on the ASX.
“It is a testament to our sustained growth in a challenging market, and our continued market leading digital revenue contribution,” QMS Media CEO Barclay Nettlefold said when the proposal was announced in October 2019.
“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,” added Quadrant’s Jonathon Pearce.
In November 2018, QMS Media completed a majority buyout of global sports media businesses TGI US and TGI Europe, gaining access to signage portfolios that include 1,750 international sporting events and leading sports associations.
In December 2019, QMS addressed claims it was facing a $200 million lawsuit by John Singleton’s outdoor advertising business Manboom over the alleged breach of a 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.
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.