Rai Way runs, working on TV antenna pole with F2i and Mfe

(Il Sole 24 Ore Radiocor) - Rai Way is racing on the stock market, with the market betting on a possible merger with Ei Towers. The stock of the TV signal transmission towers company is gaining ground against the weakness of Milan's FTSE MIB. In detail, Rai (Thursday 19 December) signed a non-binding memorandum with F2i andMfe-Mediaforeurope,shareholders of Ei Towers, for the initiation, also with the involvement of Rai Way and Ei Towers itself, of "preliminary in-depth studies on the industrial aspects of a possible aggregation" between the two companies of the towers for the transmission of the television signal.

The agreement envisages a period of exclusivity until 30 September 2025 and specifies the cornerstones of the potential transaction: these include 'the maintenance of the combined entity's listing as well as the realisation of the potential transaction in such a way as to benefit from the exemption from the obligation to promote a takeover bid, in accordance with the relevant regulations on the subject, and a road map for the definition of the terms of the potential transaction within the expiry of the exclusivity'. The possible 'signing of a Memorandum had already been anticipated by the press in recent days,' recalls Intermonte, which positively assesses the transaction. "The period of exclusivity until 30 September next seems rather large to us," warns the investment bank, "but it could prove to be functional to update the simulations with the 2024 closure and 2025 forecast, evaluate the regulatory aspects," given that the new entity will in fact operate in a "regulated monopoly regime".

For Equita, the exemption from the takeover obligation contained in the Memorandum implies that 'the transaction will go through the scrutiny of minority shareholders (with the so-called whitewash), thus offering high guarantees of a market friendly transaction'. For this reason, the analysts see "limited obstacles" to the finalisation of the agreement, especially since "significant antitrust risks" are not expected and they expect that "the analysis of the dossier will remain at the Italian level, giving greater guarantees of a faster timetable than a process at the European level". The combination, again according to Equita, could give rise to synergies of EUR 32 million, 'mainly from cost (maintenance to third parties, staff to be reduced through incentive plans'. The analysts hypothesise 'a paper-for-paper combination that values Rai Way and EiTowers on the same multiple, bringing Rai to 31% of the capital (including the sale of 15% of Rai Way's capital), F2i to 23%, Mfe to 15%, with the rest floating'.