The Prime Minister, Mario Draghi, signed the decree authorizing Rai a fall below 51% of Rai Way, paving the way for the long-awaited process of consolidation in the tower sector of transmission.
The Stock Exchange's reaction: the title soars
The news was welcomed by the markets. At Piazza Affari (Ftse Mib +3%), the Rai Way share gains 6,49% of its value, settling at 5,09 euros per share after having touched a maximum of 5,31 euros.
The possible integration with Ei Towers
The measure, let us know Reuters which cites three government officials as sources, lays the foundations for the long-awaited integration between Rai Way and Ei Towers. An operation yet to be built which, if completed, would lead to the birth of a operator worth over 2 billion euros of enterprise value that would control national infrastructures and would be able to achieve important management synergies. A project that could lead to a sharp reduction in costs that would greatly benefit Rai, which is now grappling with a cut plan aimed at "compensating" for the lower revenues recorded in recent years.
To date, Rai owns 65% of Rai Way, while Ei Towers is controlled by the F2i fund led by Renato Ravanelli and 40% owned by MediaForEurope (Mfe), the new name of Mediaset, i.e. the group controlled by the family of former Premier Silvio Berlusconi.
“Listed in 2014, Rai Way capitalizes 1,3 billion while Mfe has the equity investment in Ei Towers at 2020 million euros in terms of book value in its 437 financial statements, which implies an overall valuation of the company in excess of one billion", he explains Reuters.
The Renzi government decree on Rai Way
In 2015 Ei Tower tried to launch a takeover bid on Rai Way, but the operation failed due to the opposition of the government led by former Prime Minister Matteo Renzi who, considering the company a strategic asset, did not want it to end up in the hands of the group owned by the Berlusconi family.
Shortly before, on 2 September 2014, the Executive had signed a law which established that control of Rai Way must remain in the hands of Rai, preventing the Viale Mazzini company from falling below 51% of the Torri company.
The decree signed by the current government aims to overcome this norm. For its entry into force we will have to wait for the registration of the Court of Auditors.
