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HMI Capital backs oOh!media multimillion-dollar capital raise
Global law firm DLA Piper has advised HMI Capital, LLC (HMI Capital) on its support for oOh!media’s $167 million capital raise.
Tony Zhang
Firms: DLA Piper (HMI Capital)
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Deal: Global law firm DLA Piper has advised oOh!media’s largest shareholder, US investment management firm HMI Capital, LLC (HMI Capital) on its support for oOh!media’s $167 million fully underwritten entitlement offer and institutional placement.
oOh!media (ASX: OML) is a leading ASX-listed media company with operations in Australia and New Zealand.
Value: $167 million.
Area: Equity capital.
Key players: The DLA Piper team was led by head of equity capital markets Australia David Ryan and funds partner Martin Jamieson, with special counsel Kelly Morrison, senior associate Elliott Cheung and solicitor Kelvin Lau.
Partner Martin Thomson from DLA Piper’s Auckland office advised on the New Zealand foreign inbound investment regulatory aspects.
Deal significance: Depending on the volume taken up, it could raise its stake from 19 per cent to 25 per cent of oOh!media, which would be subject to Foreign Investment Review Board approval.
By sub-underwriting the deal, HMI Capital can go through the 20 per cent takeover rule without launching an offer for the entire company.
By holding 25 per cent of oOh!media, it cements HMI Capital’s position as the key player in the outdoor advertising company’s future. Any takeover offers would need to be supported by HMI Capital, otherwise, it has a large enough stake to block any approach outright.
Mr Ryan said: “We are delighted to have been able to move quickly to support our longstanding client, as well as oOh!media, to achieve their objectives during these uncertain and challenging times.”
Many companies experiencing a sharp decline in earnings have had to suspend trading for long periods while they assess the impacts of COVID-19 and prepare to raise funds.
oOh!media was one such company which managed to raise equity prior to ASX and ASIC announcing on 31 March 2020 temporary emergency capital raising measures to help facilitate capital raisings in the short term.
This was in part due to HMI Capital’s assuming some of the underwriting risk in return for a board seat.
Luminis Partners acted as financial adviser to HMI Capital.
This transaction is another example of DLA’s work in private equity, they had recently advised Webjet on its $346 million entitlement offer and institutional placement.
