Independent News & Media (INM) said last night it would buy Clear Channel Outdoor Holdings's 50 per cent stake in African advertising firm Clear Channel Independent (CCI).
Ireland's Independent News (INM) has owned CCI as a joint venture with Clear Channel Outdoor since 2001.
INM said the acquisition would be done through the issue of 39 million ordinary shares in the Dublin-based company at the share price at completion. Based on yesterday's close of €2.22, this values the transaction at €86.6 million.
INM said the deal was subject to regulatory approval, which was expected to be completed shortly.
INM said CCI, which has operations across Africa, has forecast 2008 earnings before interest, tax, depreciation and amortisation of €16.6 million, which represented a growth rate of more than 20 per cent on 2007.
Growth expected in the run-up to the 2010 soccer World Cup in South Africa, the company said.