Italian state-owned broadcasting towers company Raiway will not take part in the potential consolidation of Inwit (BIT:INW), the telecom towerco spin-off of Telecom Italia (BIT:TIT).
Italian state-owned broadcasting towers company Raiway will not take part in the potential consolidation of Inwit (BIT:INW), the telecom towerco spin-off of Telecom Italia (BIT:TIT).
While Raiway was interested in the towers a year before Inwit’s 40% listing, it now considers them too expensive, Raiway chairman Camillo Rossotto told Reuters. Indeed, the businesses of both Inwit and [Abertis towerco spin-off] Cellnex (BME:CLNX) are valued at much higher multiples than Raiway, he added.
Much, if not all, of the Italian telecom and broadcasting tower sectors could be rolled up within 12 months, predicted one adviser who has been active in the space.
“Assuming the Wind/3 merger is approved next year, more towers could become available, with Cellnex and American Tower (NYSE:AMT) potentially taking an interest. Furthermore, [investment fund] FSI[b] could invest in towers, while broadcasting tower owners Raiway or EI Towers could get in on the act – we can’t rule anything out.”
Cellnex this year acquired 7,377 towers from Wind, while Raiway turned down a controversial takeover offer by Mediaset (BIT:MS)-
Takeover talk around Inwit heated up this month, when Telecom Italia CEO Marco Patuano said his company was open to an approach for its remaining 60% stake in the spun off business, acknowledging that there had been “strong interest.” He emphasised however that there had been no formal offer from Cellnex, which was reported to be preparing a bid.
In June, Telecom Italia listed 40% of Inwit, raising €875m (US$976m). At the time, Patuano said the tower unit would look to expand via M&A.
Morgan Stanley, Goldman Sachs and CaixaBank ran the Cellnex IPO, which valued the company at €3.2bn (US$3.57bn), while Banca IMI, Deutsche Bank and Mediobanca worked on Inwit’s €875m (US$976m) listing.