Italian towerco EI Towers has submitted documents related to its offer for state-owned rival RaiWay to market regulator Consob.
The tower operator, which is 40% controlled by Silvio Berlusconi’s Elettronica Industriale (EI), placed a €1.2bn…
Italian towerco EI Towers has submitted documents related to its offer for state-owned rival RaiWay to market regulator Consob.
The tower operator, which is 40% controlled by Silvio Berlusconi’s Elettronica Industriale (EI), placed a €1.2bn (US$1.4bn) cash-and-stock tender offer for a minimum 66.67% stake in RaiWay on 24 February, in a bid to create a national network infrastructure player which would place Italy on a par with other European countries.
However, the government nixed the deal saying that the government must own no less than 51% of the group because of the “strategic importance of network infrastructure”.
According to a person familiar with the situation, EI Towers has not amended the terms of its original offer, although it had previously said that it was reviewing “the possibility of waiving one or more of the above conditions precedent in the offer, as well as amending them, in whole or in part, where possible”.
Consob has 15 days to examine the proposal and seek additional information if required.
Last week, Italy’s antitrust watchdog launched a 45-day probe into EI Towers’ bid aimed at assessing the potential implications of the deal for the Italian radio and broadcasting infrastructure sector, in view of the “vertically integrated” nature of EI Towers’ parent, Berlusconi-owned Mediaset Group.
Analysts suggest the parties could reach an agreement by reducing their respective stakes in the combined entity or involve other investors.
According to multiple reports, the government would back the creation of an infrastructure newco comprising EI Towers, RaiWay and Milan-based dark fiber operator Metroweb, which is controlled by state-owned lender Cassa Depositi e Prestiti (CDP).
EI Towers has scheduled a shareholders meeting for 21 April to approve the renewal of its share buyback plan in connection with the transaction.
