Investindustrial launches take-private bid for RCS

Amedeo Goria
17 May 2016

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European buyout house Investindustrial has launched a take-private bid for Italian multimedia company RCS Mediagroup, which manages publications including Corriere della Sera and El Mundo, alongside existing shareholders.

As part of the agreement, a syndicate of existing shareholders will transfer their combined 22.6% stake in a newco and subsequently launch an offer for the remaining 77.4% of shares at 70 cents apiece. The total value of the operation is estimated at €282.75m. The offer will be funded by Investindustrial alongside the existing shareholders.

Taking part in the agreement are shareholders Diego Della Valle with its 7.32% stake in the business, Mediobanca with a 6.25% stake, UnipolSai Assicurazioni with a 4.59% stake and Pirelli with a 4.43% stake.

According to a statement, Investindustrial will own a 45% stake in the newco, while the existing shareholders will take the remaining 55% by retaining a 13.75% stake each.

Depending on the number of buyers taking part in the offering, Investindustrial's investment will range between €109.6-164.4m, while Diego Della Valle will inject €7-23m, Mediobanca €11-27m, UnipolSai €17-33m and Pirelli €17-34m.

RCS manages several publications mainly based in Italy, Spain, Portugal and the US, including Corriere della Sera, Gazzetta dello Sport, El Mundo, Marca and Expansión. The fresh funding is expected to boost the company's international expansion through additional bolt-on acquisitions, particularly with regards to digital sports coverage, as well as finance the further digitalisation of the company's products. The shareholders intend to invest an additional €150m in capital for the business.

Italian bank Mediobanca is acting as financial adviser in the transaction.

The present offer comes after existing shareholders Cairo Communication and Intesa Sanpaolo offered to acquire the business, valuing the shares at 53 cents apiece.

Company
RCS was founded in 2003, following a rebranding process. The business is headquartered in Milan and listed on the Italian Stock Exchange.

The company is an international multimedia publishing group that manages daily newspapers, magazines and books, radio broadcasting, new media and digital and satellite broadcasting.

In 2015 the group posted a turnover of €1bn and €71.8m EBITDA. It employs 5,500 people.

People
Investindustrial – Andrea Bonomi (chair, managing principal).
RCS Mediagroup – Laura Cioli (CEO).