ROME: Italian tower operator EI Towers plans to offer 1.2 billion euros for domestic rival Rai Way SpA in a cash and paper deal that will create a leading player in the television and radio mast sector.
EI Towers said it would offer Rai Way investors the equivalent of 4.5 euros per share in a statement late on Tuesday. The price is a premium of around 22 percent to Tuesday’s closing price.
Shares in Rai Way rose 15 percent in early trade on Wednesday to 4.26 euros. The takeover would put Italy on a par with countries such as France, the UK and Spain by creating a single domestic player in the TV and radio transmission tower business, generating cost savings .
EI Towers, controlled indirectly by Italian private broadcaster Mediaset, said the offer comprised a cash component of 3.13 euros per share as well as 0.03 newly issued EI Towers ordinary shares.
The payment of the cash component was fully guaranteed by a primary international investment bank, which would grant EI Towers a loan to satisfy payment, the company said.
Rai Way, which was listed on the Milan bourse late last year, is 65 percent controlled by state TV company Rai, a rival to Mediaset.The main uncertainties are linked to antitrust clearance and the actual willingness of Rai to cede control of the masts to its main competitor,” Milan broker ICBPI said.
