Clear Channel set to offload European division
Outdoor media giant Clear Channel Outdoor Holdings has reportedly put its European division up for sale
Tuesday, 23 Dec 2014 10:28 GMT
Clear Channel’s European arm could fetch in excess of €2bn
Reports in the UK press suggest that the US-based firm has appointed Citigroup to attract bids for its European arm, which covers operations in countries such as the UK and France.
In the UK, Clear Channel boasts a number of high-profile clients such as Sainsbury’s and Transport for London, as well as shopping malls including Manchester’s Trafford Centre and Sheffield Meadow Hall.
City sources suggest interested bidders are likely to include CVC Capital Partners, Carlyle Group and KKR, although French rival JC Decaux is unlikely to bid due to competition rules
Clear Channel’s parent group, iHeartMedia, is rumoured to be offloading the business due to an ongoing struggle with debt, with proceeds generated from a sale going towards easing this debt.
Sources suggest Clear Channel’s European arm, which generates between €150m (£120m) and €200m each year, could fetch in excess of €2bn”
Sources suggest Clear Channel’s European arm, which generates between €150m (£120m) and €200m each year, could fetch in excess of €2bn.
An equity cheque of €1bn would be needed to buy the company, which in turn means bidders are only likely to include larger firms.
The news comes at a time where Clear Channel UK’s contract with Transport for London is reportedly up for grabs.
The contract, which is worth around £500m, is likely to attract interest from both JC Decaux and Exterion.
Clear Channel is yet to confirm any potential sale.
