Mubadala Capital Explores Buying Clear Channel Outdoor

(Bloomberg) — Mubadala Capital is exploring acquiring Clear Channel Outdoor Holdings Inc., according to people familiar with the matter.

The asset management arm of Abu Dhabi sovereign wealth fund Mubadala Investment Co. is working on a potential deal for the billboard operator, said the sources, who asked not to be named because the matter is private.

Clear Channel Outdoor shares rose 9.5% on Friday, giving the company a market value of $773 million. The company has about $6.4 billion in debt, according to data compiled by Bloomberg.

Sources said negotiations are ongoing and Mubadala Capital may decide not to pursue a transaction.

Representatives for Mubadala Capital and Clear Channel declined to comment.

The news comes as Clear Channel Outdoor is under pressure from activist investor Anson Funds Management to sell itself, Bloomberg News previously reported.

For Mubadala Capital, potential privatization is the latest sign of its global ambitions. The firm has a broad global portfolio but is not a major player in U.S. media investments.

Earlier this year, Mubadala Capital sold its minority stake to TWG Global, an investment firm led by Guggenheim Partners founder Mark Walter and financier Thomas Tull. This comes after the asset manager acquired Canadian investment fund manager CI Financial Corp. in one of the largest privatizations by an entity in Abu Dhabi.

Outdoor deals have been heating up lately. An investor group led by I Squared Capital plans to make a bid for German media group Ströer SE & Co.’s core advertising business, valuing the operations at €3.5 billion ($4.1 billion), Bloomberg News reported. Warren Buffett’s Berkshire Hathaway Inc. has become a shareholder of Clear Channel rival Lamar Publishing, according to a filing in August.

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