Rai, the new industrial plan causes the value of RaiWay to collapse
Rai has given the green light to the new industrial plan to enter the digital era. However, to finance new investments amounting to 225 million euros, which will allow it to obtain synergies worth 135 million in three years, has sacrificed 50 million euros on the stock market: this is the figure corresponding to the devaluation of its 65% stake in Rai Way. This information is reported by Repubblica. Financing for the development of public television will be covered by revenue from the sale of 15% of the company’s towers, a share that is not essential to maintaining an absolute majority. Unlike its parent company, Rai Way is a growing asseteven to the detriment of the parent company, the main customer of the television antennas, which has to face an increase in the rent indexed to inflation.
Selling part of Rai Way means giving up a portion of the profits and dividends and also involves a devaluation of the value of the entire group. Yesterday’s announcement caused a collapse in Rai Way’s shares, which had already been underperforming the market for some time, reaching lows not seen since March 2022. In that period, the Draghi government had changed the company’s statute with a Prime Ministerial Decree, allowing Rai to conclude the long-awaited agreement with EI Towers. Two years have passed since then, without anything having been done, although sources close to Viale Mazzini say that the dossier remains in the company plans. Italian investors have long been aware of the inefficiency of public television; since yesterday, they also have clear that the same applies to its financial management. Analysts believe that if Rai had announced the sale of 15% of the towers along with a merger plan with counterpart Mediaset, the value of the shares would have risen to double digits, instead of suffering a loss of 4.43%.
According to Kepler, the association between Rai Way and EI Towers would have increased the value of the shares from 4.85 euros to 7.8 euros. Rai Way’s shareholders, who have been asking for action from the company for months, also wrote to Rai’s top management on Thursday to explain their reasons, without receiving answers. When a 300 million Rai bond expires in December (with a fixed rate of 1.375%), it will be difficult to refinance it: a fund, unless an adequate adjustment is made, will not invest in a company that does not respect market rules. Even in Rai Way there are disagreements. The independent directors appointed by Assogestioni requested an in-depth analysis of the benefits of the agreement with EI Towers and the appointment of a consultant to negotiate the details of the transaction. Yesterday, Rai declared that it remains interested in “evaluating the industrial development prospects of the subsidiary”, a statement that leaves Rai Way’s management no way out in not reopening contacts with EI Towers, especially considering that the approval of a new industrial plan. Financial sources assure that the operation has already been extensively studied and that the political will would be enough to conclude it quickly. The merger of the two companies could create important synergies, as well as creating a national giant of publicly controlled television towers.
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