I Squared Capital has dropped its plans to acquire Ströer SE & Co.’s out-of-home advertising business after struggling to secure sufficient investor backing, according to a report by Bloomberg citing people familiar with the matter.
Concerns around the German economy and I Squared’s attempt to position the billboard unit as an infrastructure-style asset reportedly weighed on fundraising efforts.
A deal could have reportedly valued Ströer’s out-of-home advertising business, which includes digital and traditional billboards, at around €3.5bn ($4.1bn) or more. Ströer’s shares reversed earlier gains following the decision, falling as much as 2.5%, giving the company a market capitalisation of roughly €2.1bn.
Ströer may revisit a potential sale of the billboard unit at a later date, the sources said. CFO Henning Gieseke has previously said that while talks with financial investors had taken place, any transaction would be complex given the need to address the future of the remaining business.
