Inwit shares rise amid rumours of a takeover bid by investment funds and delisting

(Il Sole 24 Ore Radiocor) - Inwit’s share price is surging on the Milan Stock Exchange amid rumours of a takeover bid by its two main shareholder funds, followed by delisting. Ardian (a 32 per cent shareholder) and Oak Holdings (39 per cent), backed by co-investors GIP, Vodafone and KKR, are reportedly – according to Reuters – considering a possible delisting of the company through the purchase of the remaining free float (approximately 24%). According to some sources, discussions are underway with a number of banks to structure the financing for the transaction, and the Abu Dhabi-based investment firm Mubadala could participate in the shareholding restructuring. The discussions are reportedly still at a preliminary stage and none of the parties involved has commented on the rumours.

The news is set to “revive speculative interest in the share”, comment analysts at Intermonte, recalling the rumours that had already been circulating in the early months of the year. But with “a more concrete element, namely, the start of discussions regarding the financing of a potential take-private deal”. This comes as Inwit’s share price has come under significant pressure over the past year, falling by almost 30 per cent, mainly due to the ongoing dispute with TIM and Fastweb. Consequently, “an interesting potential entry point has emerged for controlling shareholders with a view to a possible reinvestment and delisting of the company”, observes Intermonte, which confirms its ‘Neutral’ recommendation with a target price of 7 euros.

‘On the one hand, the interest in a take-private deal could reflect shareholders’ confidence in the strength of Inwit’s position in the dispute with its anchor tenants; on the other hand, there remain some elements of uncertainty, including the ability to secure financing in a highly volatile market environment”, the experts explain. In any case, in the absence of details regarding the valuation, the structure of the offer and the financing terms, “we consider it premature to assess the likelihood of the transaction’s success or the potential premium to be paid to minority shareholders”.