Telecom Italia’s (TI) board has authorised the incumbent’s management to sell its controlling stake in Telecom Argentina.
TI has a 22.7% stake in the Argentine operator and has reportedly received an unsolicited US$960m bid for the shares from…
Telecom Italia’s (TI) board has authorised the incumbent’s management to sell its controlling stake in Telecom Argentina.
TI has a 22.7% stake in the Argentine operator and has reportedly received an unsolicited US$960m bid for the shares from Fintech Advisory, the investment vehicle of Mexican financier David Martinez.
For TI, a deal would form part of a three-year strategic plan designed to raise up to €4bn (US$5.3bn) through a €1.3bn convertible bond issue and asset sales.
The company is looking to reduce its net debt, which stood at €28.23bn at the end of September, and strengthen its balance sheet so it has solid foundations for future growth.
While TI’s Argentine business looks likely to be disposed of, the Italian incumbent’s CEO has said that it plans to keep hold of its majority stake in TIM Brasil, describing the asset as “core”. However some of its towers may be sold.
Both of its Latin American operators present antitrust issues for Spain’s Telefonica, which is looking to take over TI’s controlling shareholder group Telco.
The Madrid-based telco has operations in Argentina and Brazil too, through Movistar and Vivo respectively.
