You'd think APN News & Media shareholders would be kicking themselves with the news that APN Outdoor and rival oOh! Media are merging.

Three years ago, shares in the then Australasian publishing business rose five per cent on the news that private equity firm Quadrant would buy APN's remaining interest in the spun-off APN Outdoor for $69 million (it had bought a controlling share for $174.2 million in 2012).

This year, APN News & Media shareholders responded with even more enthusiasm to the news that their company was getting out of publishing - with the sale of the Australian regional media (ARM) business to News Corp - and further into outdoor by buying the remainder of Adshel.

The merged APN Outdoor and oOh! Media business - we've no more idea what they plan to call it than how APN News & Media will be known now it's out of news and media - is estimated to be worth $1.6 billion. oOh! shareholders will receive 0.83 APN Outdoor shares for each of their oOh! shares.

oOh! chief executive Brendon Cook stays in that role and as managing director, while APN Outdoor chief Richard Herring will leave after 16 years with the company.

Pre-tax cost synergies of "at least $20 million per annum" are expected from the merger, mostly from sharing infrastructure, and eliminating duplication reducing outsourcing. in July, oOh! bought digital billboard printer Cactus Imaging from Opus for $6.1 million.

Peter Coleman

Pictured: oOh! at work in a shopping centre promotion