RCS and Mondadori run on the stock market after signing agreement on Books – Reuters Italy

       

MILAN, October 5 (Reuters) – Starting session full of money to RCS and Mondadori after the signing of the agreement for the sale of RCS Libri, came after months of negotiations and several extensions.

       

At around 9.10 RCS jumped 5.15% to 0.8875 and EUR Mondadori gained 3.9% to 1,012.

       

Late yesterday RCS announced that it had signed an agreement to sell its entire holding in RCS Books Mondadori at the price of 127.5 million Euros.

       

“The long negotiation was resolved by granting a discount of 7.5 million compared to the offer binding in return for assumption by Mondadori of any antitrust risks,” he emphasizes ICBPI the day note. “For the sale of RCS Books allow a significant reduction of debt (526 million), which should solve the node linked to its covenants. Mondadori reinforces a position of leadership in books (39% market share, trade and education to 25%) with the ability to extract significant synergies approaching the profitability of assets acquired in line with Mondadori’s books (13% EBITDA margin in 2014). “

       

The price, the statement said RCS, was determined on the basis of an enterprise value of 130 million and an average NFP (to neutralize the effects of the seasonality of the business) and ground (also including the repurchase of minority Marsilio) EUR -2.5 million. This will also include mechanisms for price adjustment equal to a maximum +/- 5 million on the basis of predetermined financial objectives related to the results of 2015 RCS Books and an earn-out in favor of RCS MediaGroup up to 2.5 million upon the occurrence of certain conditions referred to the aggregated results of its activities in 2017 libraries.

       

The scope of the transaction includes the entire stake (99.99%) owned by RCS MediaGroup RCS Books with the underlying investments (which at closing will include the 94.71% of Marsilio Editore), with the exception of 58% owned in Adelphi Edizioni, which will be sold to the shareholder Roberto Calasso.

       

The perimeter recorded in FY 2014 pro forma that showed revenues of EUR 221.6 million, EBITDA before non-recurring 8.8 million and investments of 11 million, of which 1.7 million is for the renewal of libraries Rizzoli.

       

The closing is subject to approval by the appropriate regulatory authorities; any measures conditional authorization shall not prejudice the completion of the operation and will not involve changes in the economic conditions for RCS MediaGroup.

       

The transaction, which will be settled in cash at closing, “RCS will allow one hand to dispose of financial resources for investments in business development, the other to strengthen its financial structure and to proceed path redefinition of the main terms of the loan with the lending institutions, “stresses the statement. More …