Bad day on the stock exchange for Telecom Italy Media, who yesterday closed the deal for the sale of La7 to the publisher Urbano Cairo. This morning at the opening the shares of the company controlled by Teleocm Italia were unable to make a price, marking a theoretical drop of seven points. After a few minutes, the stock was admitted to trading and about an hour after the start of trading, it dropped more than five points, at €0,1485. Yesterday TI Media shares had closed down by 6,4%, at 0,157 euro. This morning, however, the titles of Telecom Italy (+0,8%) and of Cairo communication (+ 3,57%).
The formalization of the contractual agreements for the purchase of La7 is expected "in a very short time and the subsequent completion of the operation will be subject to the authorizations required by current legislation". This was stated by Cairo Communication which, in a note, confirmed the achievement of an agreement for the purchase of the entire capital of La7, with the exclusion of the stake held by it in MTV Italia.
The operation will allow Cairo to "enter the television publishing sector, integrating its advertising space sales agency activity upstream and allowing it to diversify its editorial activity currently focused on magazine publishing".
The main terms of the agreements reached provide that the purchase of La7 will take place against a consideration of one million euros and Telecom Italia Media's commitment to ensure that, on the execution date, the net financial position of La7 is positive for at least 88 million and the shareholders' equity is equal to at least 138 million euro.
As part of the agreements reached - underlines Cairo in the note - the signing of a multi-year agreement between La7 and Telecom Italia Media Broadcasting is also envisaged for the supply of transmission capacity and Cairo Communication's commitment not to sell its stake in La7 for 24 months.
