(Adds target company quote, share information) SYDNEY, Dec 14...

(Adds target company quote, share information)

SYDNEY, Dec 14 (Reuters) - Australian billboard company APN Outdoor Group Ltd (APO) plans to buy rival oOh!Media Ltd (OML) in all-shares deal that values the target at A$735 million ($550.29 million), the companies said on Wednesday.

The Sydney-listed companies said APN planned to give oOh!Media shareholders 0.83 of an APN share for every oOh!Media share they own, amounting to A$4.48 per share based on Tuesday's closing price.

The deal represents a 3 percent premium to oOh!Media's last trade but a more than doubling of oOh!Media's issue price when it listed in December 2014.

The statement said oOh!Media's board recommended the offer in the absence of a better one and as long as an independent expert report agreed it was in the best interests of shareholders.

"The amount of cost synergies expected to be generated, and the resulting EPS accretion will create substantial value for both shareholder groups," oOh!Media Chairman Michael Anderson said in the statement.

"The enhanced balance sheet strength and financial scale, together with increased funding opportunities, will support the merged group's ability to pursue future growth and digitisation opportunities."

The companies said they expected the deal would generate pre-tax savings of A$20 million a year. The offer needs regulatory clearance and shareholder approval to proceed. ($1 = 1.3356 Australian dollars)