CCO - Clear Channel Outdoor gains amid activist push for sale of entire company

2023-05-16 17:00:59 ET

Clear Channel Outdoor ( NYSE: CCO ) rose 3% in after hours trading as activist Legion Partners is pushing the billboard company to evaluate a sale of the entire company.

Legion Partners, which has been an investor in the company since 2021, disclosed it has a 5.1% stake in Clear Channel Outdoor ( CCO ) and wants the company to speed up its strategic review, according to a 13D filing on Tuesday.

Legion Partners wants Clear Channel Outdoor ( CCO ) to accelerate the sale process for Europe-North, begin the sales process for Latin America, consider selling select U.S. assets and concurrently explore a sale of the entire company.

"Ultimately, we believe the board must accelerate and broaden its pursuit of strategic alternatives for CCO shares to reach full and fair value, including a potential sale of the entire company," Legion Partners wrote in a letter to the CCO board.

Legion Partners argued in the letter that both strategic and financial parties could be interested in purchasing the entire company.

Legion Partners sees Clear Channel Outdoor's ( CCO ) sum-of-the-parts valued based on 2024 adj. EBITA estimates as $3.57, representing 230% upside from the current price.

The story was earlier reported by Bloomberg.

Clear Channel ( CCO ) shares fell 13% a week ago when the billboard company reported Q1 results and gave guidance.

Clear Channel ( CCO ) short interest is 9.9%.

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