Italy state broadcaster RAI moves towards tower tie-up, sources say

Rai Way SpA

11/12/2024 13:46

MILAN, Dec 11 (Reuters) - Italian state broadcaster RAI
is taking early steps towards a potential merger between its
Milan-listed tower unit RaiWay  RWAY.MI  and rival EI Towers,
two sources close to the matter told Reuters.
     A tie-up between RaiWay and EI Towers, which is owned by
Italian infrastructure fund F2i and Italy's top commercial
broadcaster MFE  MFEB.MI  has been mooted for years.
    It would create a national broadcasting tower champion worth
nearly 4 billion euros ($4.21 billion), when including debt.
    RAI's board of directors may discuss a preliminary
non-binding agreement to initiate talks with EI Towers
shareholders on a deal at a meeting scheduled for Dec.19, one of
the sources said. 
    Earlier this year, Rome approved a decree stating that any
cut in RAI's stake in its tower unit must be pursued through
"deals that ensure a combination of entities operating in the
same sector."
    A memorandum of understanding with F2i and MFE would allow
RAI to start considering strategic options for its tower unit,
including a potential stake sale, according to the sources.
     Before the decree was approved in May, RAI was considering
selling up to a 15% stake in RaiWay to fund its business plan
and its financing needs.
    The sources said that the main shareholders of RaiWay and EI
Towers had not yet agreed the structure of a tie-up between the
two broadcasting tower companies. 
    The decree confirmed an existing obligation for RAI, which
currently owns 65% of RaiWay, to maintain at least a 30% stake
in its tower business.
    All the parties involved declined to comment or were not
immediately available.

    


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 (Reporting by Giuseppe Fonte and Elvira Pollina, editing by
Giselda Vagnoni)
 ((elvira.pollina@thomsonreuters.com;))