HMI Capital, a US investment house started during the GFC, has increased its holding in outdoor media specialist oOh!media.
It now has 18.6%, up from 16.34%, according to filings made to the ASX.
The purchase was made two days before oOh!media called a trading halt as it considered an equity raising.
The shares last traded at $0.84, indicating a market capitalisation of around $200 million. Net debt was $354.5 million at the end of December 2019 and the company's loans have an expiry date of September 2021.
Analysts have marked down oOh!media’s revenue prospects this year in an already weak advertising market but still see strong long term growth for the out-of-home sector and the benefits to oOh!media.
Out-of-home (OOH) is around 6% of the advertising pie in Australia and OOH audience growth has outpaced population growth since 2011, according to analysis by Macquarie.
So far, oOh!media's revenue for the year to date has been in line with the same period last year with the first quarter in line with previous earnings guidance.
However, the company, like many ASX-listed entities facing fallout from the coronavirus, has withdrawn its previous full year earnings guidance of $140 million to $155 million and is looking at pulling back on capital spending and cutting costs.
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