Mubadala Capital Explores Buying Clear Channel Outdoor - Bloomberg

Mubadala Capital Explores Buying Clear Channel Outdoor - Bloomberg

Mubadala Capital is exploring an acquisition of Clear Channel Outdoor Holdings Inc., according to people familiar with the matter.

The asset management arm of Abu Dhabi sovereign wealth fund Mubadala Investment Co. has been working on a potential deal for the billboard operator, the people said, asking not to be identified because the matter is private.

Clear Channel Outdoor closed 19.72% higher Friday on the news, giving the company a market value of about $845 million. The company has about $6.4 billion in debt, according to data compiled by Bloomberg.

Deliberations are ongoing and Mubadala Capital may decide not to pursue a transaction, the people said.

Representatives for Mubadala Capital and Clear Channel declined to comment.

The news comes as Clear Channel Outdoor is under pressure from activist investor Anson Funds Management to sell itself, Bloomberg News previously reported.

Sagar Gupta, Anson’s head of activism and a portfolio manager said in an emailed statement Friday that an acquisition of the company “represents a generational opportunity to secure incredibly scarce, high quality assets in a consolidating media industry.”

He added, “We expect the board to take all steps necessary to maximize shareholder value immediately.”

For Mubadala Capital, the potential take-private is the latest sign of its global ambitions. The firm has a sprawling global portfolio but isn’t a major player in US media investments.

Earlier this year, Mubadala Capital sold a minority stake in itself to TWG Global, an investment firm led by Guggenheim Partners founder Mark Walter and financier Thomas Tull. That came after the asset manager snapped up Canadian mutual fund manager CI Financial Corp. in one of the largest privatizations by an Abu Dhabi entity.

Dealmaking in outdoor has been heating up lately. An investor group led by I Squared Capital has been planning a bid for German media group Ströer SE & Co.’s core advertising business, which could value the operations at €3.5 billion ($4.1 billion), Bloomberg News has reported. Warren Buffett’s Berkshire Hathaway Inc. has become a shareholder in Clear Channel rival Lamar Advertising, a filing in August showed.