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Billboard company Clear Channel Outdoor (NYSE:CCO) on Tuesday said it would sell its businesses in Italy and Spain to units of French outdoor advertising firm JCDecaux (OTCPK:JCDXF) (OTCPK:JCDXY) for approximately EUR 75.1M (about $81M).
CCO stock was up 1.6% to $1.30 after hours.
The deal comes nearly two weeks after news that activist investor Legion Partners was pushing CCO to evaluate a sale of the entire company.
“The sale of our businesses in Italy and Spain is another important step forward toward our goal of optimizing our portfolio in the best interests of our shareholders,” CCO CEO Scott Wells said in a statement.
The company said it planned to use the proceeds from the sales “to improve its liquidity and increase the financial flexibility of the business.”
CCO added that it was continuing a review of strategic alternatives for its other European businesses.
JCDecaux (OTCPK:JCDXF) (OTCPK:JCDXY) co-CEO Jean-Charles Decaux in a separate statement said the acquisitions were “part of JCDecaux’s selective external growth strategy. The acquisition of Clear Channel’s (CCO) businesses in Italy and Spain (subject to standard regulatory approval in the case of Spain) will extend JCDecaux’s footprint in established regions, thereby boosting the Group’s momentum and development.”
