Clear Channel Outdoor Holdings, Inc. Completes Sale of Clear Channel France to Equinox Industries
SAN ANTONIO, Oct. 31, 2023 /PRNewswire/ — Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the “Company”) today announced that it has closed the previously announced sale of its business in France to Equinox Industries.
Additionally, the Company has initiated a process to sell the businesses in its Europe-North segment, which include operations in the United Kingdom, the Nordics and several other countries throughout Northern and Central Europe. The Company has also initiated a strategic review of its Latin American businesses, which include operations in Mexico, Brazil, Chile and Peru. To date, the Company has sold its businesses in Switzerland, Italy and France and has agreed to sell its business in Spain.
“Clear Channel’s Board of Directors and management team are focused on delivering profitable growth, strengthening our balance sheet and further demonstrating the operating leverage of our model,” said Scott Wells, Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. “Following the sale of our business in France, we have divested, or have agreed to divest, all of our Europe-South segment operations. We continue to take meaningful action to optimize our portfolio and improve our capital structure, including initiating a process to sell our Europe-North segment and conducting a strategic review of our Latin American businesses. We are committed to acting in the best interests of our shareholders and to driving value creation.”
There can be no assurance that the initiation of the process to sell our Europe-North segment and the strategic review of our Latin American businesses will result in any transactions or particular outcomes. The Company has not set a timetable for completion of these processes, may suspend these processes at any time and does not intend to make further announcements regarding these processes unless and until the Company’s Board of Directors approves a course of action for which further disclosure is appropriate.
The Company has engaged Moelis & Company LLC and Deutsche Bank Securities Inc. as financial advisors to assist it with the process to sell the Company’s Europe-North segment. The Company has engaged Moelis & Company LLC as financial advisor to assist it with the strategic review of our Latin American businesses.
Europe-South Segment Moved to Discontinued Operations
During the third quarter of 2023, the Company’s plan to sell the businesses comprising its Europe-South segment met the criteria to be reported as discontinued operations. In accordance with Generally Accepted Accounting Principles, starting with the release of the Company’s third quarter results, assets and liabilities of discontinued operations will be presented separately in the Company’s Consolidated Balance Sheets, and results of discontinued operations will be reported as a separate component of consolidated net loss in the Company’s Consolidated Statements of Loss for all periods presented, resulting in changes to the presentation in certain prior periods’ amounts.
About Clear Channel Outdoor Holdings
Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is at the forefront of driving innovation in the out-of-home advertising industry. Our dynamic advertising platform is broadening the pool of advertisers using our medium through the expansion of digital billboards and displays and the integration of data analytics and programmatic capabilities that deliver measurable campaigns that are simpler to buy. By leveraging the scale, reach and flexibility of our diverse portfolio of assets, we connect advertisers with millions of consumers every month across more than 330,000 print and digital displays in 19 countries, excluding countries held for sale.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “would,” “estimate,” “forecast,” “goals,” “potential,” “targets” and similar words and expressions are intended to identify such forward-looking statements. Any statements that refer to expectations or other characterizations of future events or circumstances, such as statements about our strategies with respect to the Company’s North-Europe segment and Latin American businesses and our expectations of optimizing our portfolio; our expectations with respect to the timing, closing, satisfaction of closing conditions and benefits of the sale processes and strategic reviews or any proposed transaction; our expectations with respect to our America and Airports segments; and our business plans and strategies are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.
Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this press release include, but are not limited to: the difficulty, cost and time required to implement our strategy, including optimizing our portfolio, and the fact that we may not realize the anticipated benefits therefrom; the delay or failure to satisfy the conditions to divest our business in Spain; our inability to complete the sales of our North-Europe segment businesses; our inability to complete any strategic transaction with respect to our Latin American businesses; the impact of future dispositions, acquisitions and other strategic transactions; continued economic uncertainty; an economic slowdown or a recession; financial and industry conditions such as volatility in the U.S. and global banking market; our ability to service our debt obligations and to fund our operations, business strategy and capital expenditures; the impact of our substantial indebtedness, including the effect of our leverage on our financial position and earnings; the impact of our liquidity strategy, including open market repurchases of outstanding notes; risks of doing business in foreign countries; fluctuations in exchange rates and currency values; the volatility of our stock price; the impacts on our stock price as a result of future sales of common stock, or the perception thereof, and dilution resulting from additional capital raised through the sale of common stock or other equity-linked instruments; our ability to continue to comply with the applicable listing standards of the New York Stock Exchange; the restrictions contained in the agreements governing our indebtedness limiting our flexibility in operating our business; and certain other factors set forth in our filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Other key risks are described in the section entitled “Item 1A. Risk Factors” of the Company’s reports filed with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The Company does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.
SOURCE Clear Channel Outdoor Holdings, Inc.
