Rai Way rises after media reports on possible tie up with Ei Towers

Rai Way SpA

26/03/2024 12:47

** Shares in Rai Way  RWAY.MI  rise as much as 6.4% after
media reports that the Italian broadcasting towers company is
evaluating a potential merger with rival Ei Towers
    ** Rai Way declined to comment
    ** Italian newspaper Il Sole 24 Ore reported that Rai Way
has mandated Citigroup to evaluate a potential merger with Ei
Towers
    ** La Repubblica, citing government sources, reported that
Italy, indirectly holding a stake close to 65% in Rai Way
through the Italian state broadcaster RAI, sees the merger
favourably
    ** Ei Towers is 40% owned by Italy's broadcaster
MediaForEurope (MFE)  MFEB.MI , that is controlled by the
Berlusconi family, while the Italian infrastructure fund F2i
holds the remaining 60%
    ** Brokerage Equita says that if the intention of the
Italian government to proceed with a merger with Ei Towers is
confirmed, it would allow a re-leverage of the combined entity
    ** Equita adds that the re-leverage could take place through
the distribution of an extraordinary dividend it estimates at
1.5 euros ($1.63) per share, versus the 32.22 eurocents per
share Rai Way proposed for 2023
    ** As of 1245 GMT Rai Way shares were up 3.1%, outperforming
Italy's all-shares index  .FTITLMS 
    

 (Reporting by Philippe Leroy Beaulieu, Giulia Segreti)
 ((Philippe.leroybeaulieu@thomsonreuters.com))