March 17 Outdoor advertising company CBS Outdoor
Americas Inc said it planned to raise up to $560 million in an
initial public offering of its common shares, valuing the
company at about $3.36 billion.
CBS Outdoor, part of media conglomerate CBS Corp,
expects its offering of 20 million shares to be priced between
$26 and $28 each, the company said in a filing with the U.S.
Securities and Exchange Commission on Monday. ()
CBS, which will reduce its stake to 83 percent after the
offering, plans to convert CBS Outdoor into a real estate
investment trust (REIT).
As a REIT, it can avoid paying corporate-level income taxes
if it distributes at least 90 percent of its taxable income to
shareholders in the form of dividends.
CBS Outdoor, which competes with Clear Channel Outdoor
Holdings Inc and Lamar Advertising Co, said net
income rose 27 percent to $143.5 million on revenue of $1.29
billion in 2013.
CBS Outdoor had about 330,000 displays in the United States
and about 26,200 displays across Canada and Latin America as of
Dec. 31. The company has displays in some of the most heavily
trafficked locations such as the Bay Bridge in San Francisco,
Sunset Boulevard in Los Angeles and Grand Central Station and
Times Square in New York City.
Outdoor advertising companies have been converting their
traditional billboards to digital billboards as it allows them
to run multiple ads on each display.
The company expects to list on the New York Stock Exchange
under the symbol "CBSO".
Goldman Sachs, BofA Merrill Lynch, J.P. Morgan and Morgan
Stanley are the lead underwriters of the offering.