Reuters logo
UPDATE 1-Italy's RCS shareholders approve cash call to keep publisher in business
May 30, 2013 / 7:38 PM / 4 years ago

UPDATE 1-Italy's RCS shareholders approve cash call to keep publisher in business

* Shareholders approve cash call of up to 600 mln euros

* Includes capital increase of 400 mln euros this summer

* Shareholder Della Valle voted against (Recast with shareholder vote)

MILAN, May 30 (Reuters) - Shareholders of Italy’s RCS MediaGroup on Thursday voted in favour of a rights issue of up to 600 million euros needed to keep the money-losing publisher in business.

The agreement followed a deal with banks to soften the terms of a 600 million euro refinancing deal for the debt-laden group, which publishes influential Italian daily Corriere della Sera.

Around 87 percent of shareholders present at the company’s annual general meeting on Thursday voted in favour of the capital increase, which includes a rights issue of 400 million euros (US$522.18 million) to be carried out this summer.

Some shareholders had criticised the initial terms of the refinancing deal with creditors and had threatened to vote against the capital increase unless those terms were improved.

Fashion mogul Diego Della Valle, the owner of luxury goods company Tod’s who holds 8.7 percent of RCS, voted against the cash call.

Della Valle said earlier on Thursday, through a representative, that should the rights issue be approved by shareholders the group’s business plan, judged overly optimistic, should be changed.

RCS has said the rights issue is needed to allow it to continue as a going concern. A capital hike for a minimum amount of 380 million euros was also a condition of the bank deal.

The indebted group has been hit hard by the economic crisis that has rattled Europe and ended 2012 with a loss for the second straight year, with margins squeezed by a rapid fall in advertising and circulation sales. ($1 = 0.7712 euros)

Reporting by Claudia Cristoferi and Danilo Masoni, writing by Stephen Jewkes; Editing by Dan Grebler

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below