Urbano Cairo wants to take the Corriere della Sera. The publisher La7 launched a tender offer on 100% of the exchange of RCS, the company that controls the Via Solferino newspaper. The proposal provides for the offer of 0.12 shares Cairo Communication for each title brought Rizzoli.
The offer of RCS MediaGroup is to “create a great multimedia publishing group, with a stable and independent leadership, and to strengthen the economic and financial point of RCS accelerating the restructuring and revitalization process,” says Cairo Communication in press operation.
Cairo already owns 4.6% of the RCS, which at current prices capitalizes bag about 237 million. Shareholder of the publishing company is the Fiat with 16.7%, followed Mediobanca with 9.9% and Della Valle with 7.3%.
Under the terms of the offer , each 8,333 shares contributed RCS, the members receive a Cairo Communication action. On the basis of the official price of RCS shares and registered shares of Cairo on April 7, the enhancement of RCS shares was 0.551 euro, net of the dividend the offer is 0.527 €. Today the title RCS closed at 0.455 EUR, then the offer provides a 13.6% premium.
The areas of Cairo Communication and RCS activities “are highly complementary and their combination would create a diversified group which, taking leverage quality of its editorial products in the news sectors, periodicals, sports and television, can position itself as a benchmark operator in the Italian market, with a strong international presence, and make the most of the opportunities arising from the convergence of traditional media on the Internet and mobile platforms, “he points out in the note announcing the operation.
Cairo, still says the note, “expected, therefore, to carry out an industrial project around an incisive recovery plan of RCS, in maximizing the potential of publications including through the development of digital products and the strengthening of ‘ offer in not highly distinctive publishing activities, such as sporting events. “
the Cairo offer of RCS MediaGroup is conditional accession of actions that allow the supplier to have shares equal to at least 50% plus one share of common stock. Before the conclusion of the offer, the lenders will have to commit to giving up the right to request early repayment of debt on account of the change of control. then they do not have to ask until the end of 2017 RCS no payment of principal, except for the partial early repayment with the proceeds from the sale of RCS Libri. The banks will have to be committed not to use the withdrawal of funding, not to ask for insolvency proceedings to RCS, and to keep the lines of financing in place.
Cairo indicated that the offer is aimed delisting of RCS title from Square Business and explained that at the end of the operation if it were to have a greater share of the Corriere della Sera of 90%, will work to restore the free float ‘sufficient to ensure regular trading of RCS shares’ on the Italian stock Exchange market .
Today the stock Exchange RCS had closed with a 11.52% leap to 0.455 euro and in the evening had circulated rumors of strong hands in shares on the stock. A movement that was already reported by some sessions. The title of the publishing group, which today marked the minimum sitting at 0.41 euro in early trading, then progressed slowly in the entire list upward trail and then take a few minutes before closing. Then with the markets closed the announcement of the takeover bid Cairo.
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