Legion Partners reaches agreement with Clear Channel Outdoor Holdings (CCO)

Key Summary: On May 16, 2023, Legion Partners (5.1%) urged board for broader strategic review and expressed concern over the pace. On Jan 31, 2024, they cooperated and added Ted White (co-founder of Legion Partners) to the board.

Market Cap: $845 million | Clear Channel Outdoor Holdings, Inc. operates as an out-of-home advertising company in the United States, Europe, and internationally. 

Background

On May 16, 2023, Legion Partners (5.1%) delivered a letter to the board expressing its belief that the current market price of the shares does not reflect the company’s intrinsic value. As detailed in the letter, in the Legion Partners' view, the company’s strategic review of non-core assets in Europe is an appropriate and necessary strategic initiative but may not sufficiently improve the market price of the shares or the capital structure. In addition, Legion Partners  noted its concern with the scope and pace of the current strategic review process and belief that the Board needed to consider, with greater urgency, a broader strategic review process, including potential divestitures of other non-core assets and select U.S. assets, or a sale of the entire company. Legion Partners  stated that it may seek to add industry, capital markets and governance expertise to the board.

Update

On January 31, 2024, Legion Partners (5.4%) entered into a cooperation agreement with the company and pursuant to it, the company increased the size of the Board to 10 and appointed Ted White (co-founder, Chief Compliance Officer and a Managing Director of Legion Partners Asset Management ) as a member of the Board.