The HT&E Ltd (ASX: HT1) share price surges 6% higher on competing bids for Adshel

oOh!Media Ltd (ASX: OML) and APN Outdoor Group Ltd (ASX: APO) are interested in HT&E Ltd (ASX: HT1) outdoor business. Who will close the deal?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in advertising and media company HT&E Ltd (ASX: HT1) climbed 6% higher on Tuesday to $2.42, their highest price since September.

The price run follows media speculation – later confirmed by market updates from the companies involved – that oOh!Media Ltd (ASX: OML) and APN Outdoor Group Ltd (ASX: APO) launched competing bids to acquire Adshel, HT&E's outdoor advertising business.

The series of announcements started Monday morning, with oOh!Media responding to media speculation that it had submitted a revised offer for Adshel following the rejection of a first proposal formulated in April. The company confirmed having raised its offer to $470 million.

In the space of three hours, HT&E Limited announced it had received multiple offers and oOH!Media's wasn't the most attractive. Negotiations with oOH!Media halted when the bidder turned down HT&E's offer to provide further due diligence on a non-exclusive basis.

The identity of the second bidder was revealed a few hours later, when APN Outdoor Group confirmed it had submitted a non-binding proposal for Adshel. APN gave more detail on Tuesday, specifying the offer amounts to $500 million.

HT&E stated the board is willing to engage in any indicative proposal that delivers compelling value to shareholders. However, there is no certainty that any proposal will result in a binding offer capable of attracting support from the board, and HT&E might retain its outdoor business. The company appointed financial advisers CLSA Corporate Finance and Credit Suisse to assist in reviewing the proposals.

With so much interest around Adshel, both bidders fell on Tuesday's trade. At the time of writing, Ooh!Media is down 2% to $5.34, and APN is down 3% to $5.14.

Foolish Takeaway

This takeover fever is good news for HT&E shareholders, as long as it keeps the stock buoying. However, I think they would be better off without divestments.

Competition is tough in the media sector since the advent of online advertising, and diversification and synergies are key to survival. HT&E is a diversified media outlet, and its radio network benefits from its outdoor advertising. Selling one could damage the other.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »