Shareholders in Italy's EI Towers pick banks to explore M&A - sources

Rai Way SpA

09/08/2022 16:31

MILAN, Aug 9 (Reuters) - Shareholders of Italian
broadcasting tower company EI Towers have picked Credit Suisse
and Mediobanca as advisers to look into a potential combination
with state-controlled rival Rai Way  RWAY.MI , two sources
familiar with the matter said. 
    The move shows how the companies are still looking to work
out a long mooted tie-up despite uncertainty created by national
elections in Italy next month.
    A potential deal could create a group worth more than 2
billion euros ($2.04 billion).
    EI Towers is 60%-owned by Italian infrastructure fund F2i
and Italy's top commercial broadcaster MediaForEurope (MFE),
controlled by the family of former Prime Minister Silvio
Berlusconi, holds the remaining 40%.
    "Things are in the very preliminary stage", one of the
sources said. A second source said other advisers are expected
to join Mediobanca  MDBI.MI  and Credit Suisse  CSGN.S .
    A F2i spokesperson said no adviser has been formally
appointed yet. MFE declined to comment.
    Earlier this year, outgoing Prime Minister Mario Draghi
approved a decree allowing state broadcaster RAI to cut its
holding in tower business Rai Way to below 51% from the current
65%, in a move expected to trigger consolidation in the
television and radio mast sector.  urn:newsml:reuters.com:*:nL2N2VA1QL
    Under the decree, RAI can cut its stake in Rai Way as low as
30% but no lower, while keeping control of Rai Way's
infrastructure. 
    RAI had then selected investment bank Lazard to assess M&A
options for the tower business.  urn:newsml:reuters.com:*:nL1N2XV17I
    A potential deal, whose key details need still to be
finalised, could include an extraordinary payout for Rai Way and
EI Towers investors, according to a report by Italian daily La
Repubblica on Tuesday, which sent Rai Way shares up as much as
7% on the day.  urn:newsml:reuters.com:*:nL8N2ZL1SD
    MFE shares gained more than 2%  MFEA.MI   MFEB.MI .

    
    
    


($1 = 0.9783 euros)

 (Reporting by Elvira Pollina. Editing by Jane Merriman)
 ((elvira.pollina@thomsonreuters.com;))