Oakley Capital Private Equity (OCPE) has announced the successful completion of the Initial Public Offering (IPO) of Time Out Group, which raised GBP90 million (gross).
Since OCPE’s initial investment, Time Out has significantly grown and developed its digital media and ecommerce business, transitioned the magazines to a free print model in key geographies, consolidated the brand ownership by acquiring back the key licensee territories and acquired the Time Out food market in Lisbon, Portugal.
Time Out now has its largest audience in its 48 year history with an audience reach of approximately 111 million per month across all platforms and has a broad global network comprising owned and operated operations in 65 cities and 14 countries and brand licensees in another 42 cities across 25 countries. In the last two years, the Group has invested significantly in development, operational and other expenses related to the Group’s growth prospects. As a result, the Group reported operating losses of GBP8.4 million and GBP18.5 million for the financial years ended 31 December 2014 and 2015, respectively. The proceeds from the IPO after debt repayment and transaction costs will be used by the Group to invest in sales and marketing, further development and growth of its digital media and ecommerce platform and in replicating the Time Out food markets concept in new cities.
As a result of the IPO, Oakley Capital Investments Limited (OCIL), the AIM-listed company established to provide investors with access to the investment strategy being pursued by OCPE, has transferred its co-investments in Time Out Markets and Flypay to the Group and the OCIL investment in the Group has all been converted into ordinary shares. The result is that OCIL’s direct exposure to the Group is entirely via an equity stake in the Group, which at the IPO price will be valued at GBP47.2 million and will represent 24.2 per cent of the Group’s issued share capital. In addition OCPE, in which the Company is a limited partner with a 65.5 per cent interest, will at IPO hold an interest in the Group valued at GBP68.0 million, representing 34.9 per cent of the Group’s issued share capital.
Peter Dubens, Director, says: "This investment is another example of Oakley leveraging its entrepreneurial, digital and operational experience and expertise to fund and support a complex strategic transformation. Time Out’s successful listing is a clear endorsement of the company’s transformation over the past five years and its prospectus for value generation in the future. We are a committed shareholder in the business and we look forward to the company going from strength to strength under the experienced management led by Group CEO, Julio Bruno.”
