The deal will see Champ through its company Outdoor Media Operations acquire Eye’s Australian and New Zealand businesses, as well as the US, UK and Indonesian operations.
However OMO has said it intends to sell on the UK and US operations. If both operations are not sold within an agreed timeframe, Ten “may choose, or be required, to reacquire them from OMO for nominal consideration”, the company said in a statement.
Ten CEO James Warburton said: “Successful completion of the transaction with OMO will be good news for Ten. It will make our balance sheet stronger by further reducing debt and will give us additional opportunity to invest in the creative renewal of Ten’s television content.”
Ooh! Media CEO Brendon Cook added: “Combining these two companies will provide Australian advertisers with a broader range of solutions and innovative products to expand their reach in a competitive and rapidly evolving media environment.”
Darren Smorgon, director of Champ Private Equity said: “We believe this will bring increased competitiveness into the advertising industry as the company can be more responsive to the needs of advertisers, it will accelerate the realisation of Ooh! Media’s growth objectives and assist in growing the Australian out-of-home sector.”
The deal is subject to regulatory approval.
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