australia's apn cool to $803 million conditional offer from france's jcdecaux - outdoor advertising

SYDNEY (Reuters)-
French outdoor advertising company JCDecaux (JCDX. PA)
Australian billboard company APN Outdoor Group APO has offered a conditional $0. 803 billion acquisition offer.
To protect its market share, AX received a cold response from APN.
JCDecaux, in bus-
Signs and billboards cost $6.
Each APN shares 52, one for 11.
A 5% premium to APN's closing price on Wednesday, valued at $1. 09 billion ($802. 46 million).
The offer is indicative.
Binding and also subject to cancellation of APN's $0. 47 billion bid for HT & E (HT1. AX)
JCDecaux's direct competitor, Adshel, the outdoor advertising division.
In a statement on Thursday, the APN said the premium was "moderate" and said it would not reject the offer to acquire Adshel.
The company added that it will continue to conduct due diligence on the company.
"APO sees the Adshel proposal as an attractive opportunity for the company and its shareholders," APN said . " Although it warned that the deal would not continue.
The offer is in large quantities
Conditions, including approval by the Australian Competition and Consumer Council (ACCC)
The APN added that it is evaluating the offer for JCDecaux.
Twice the shares of APN
Thursday's annual high soared by 14.
$ 5% to $6.
70, then erased some of the gains from trading at $6. 59.
The local sector of the French company is threatened by APN's intention to expand on buses --
The advertising market, analysts say.
"This is determined by the timing of APN bidding for Adshel," said Ivor Ries, senior analyst at Morgans . ".
"JCDecaux is working to prevent this from happening," he added . ". APN, Ooh! Media (OML. AX)
According to research firm IBISWorld, JCDecaux ranks first, second and third in Australia's $0. 9 billion Billboard and outdoor advertising market.
HT & E ranked fourth.
Last year, ACCC blocked the merger plan between APN and oh!
Because of that tie.
This will hurt competition. Ooh!
Media shares rose.
Thursday morning 2%
"This acquisition reminds the market that Australian outdoor media companies are trading far below international comparable levels," said Ries, an analyst at Morgans . ".
He estimates that the price quoted by APN decaux is about 16 times the forecast 2019 earnings.
"Given the high P/E ratio of overseas outdoor companies, this may alert other players to the value gap," Ries said . ". (
This version of the story has been re-filed to fix the spelling of the second ad. )