Italy’s biggest commercial broadcaster, Mediaset (MS.MI), launched a 57 euro per share joint takeover bid with infrastructure fund F2i for the 60 percent of its EI Towers (EIT.MI) masts unit that it does not already own, the companies said on Monday.
The sector has been attracting investors looking for infrastructure-based assets that offer steady long-term returns thanks to multi-year hosting contracts.
Italy’s Benetton family last week completed the purchase of a 29.9 percent stake in Cellnex (CLNX.MC) for 1.49 billion euros and said it saw strong growth prospects for the Spanish masts group.
EI Towers, which operates broadcasting and radio antennas, is worth 1.4 billion euros ($1.6 billion) based on Monday’s closing price of 49.35 euros a share.
Credit Suisse, Mediobanca and Intesa Sanpaolo advised F2i while UniCredit advised Mediaset.
The masts sector in Italy has long been seen as ripe for consolidation.
EI Towers was born in 2012 when Mediaset, which is controlled by the family of former Prime Minister Silvio Berlusconi, merged its tower business with rival DMT Group.
In 2015 EI Towers attempted to take over rival state-owned Rai Way (RWAY.MI) but met resistance from Italy’s then center-left government, which said it wanted to keep a stake of at least 51 percent in the towers unit of national broadcaster Rai.
Source: Reuters.com