Italian incumbent Telecom Italia (TI) has mandated Deutsche Bank and Banca IMI to advise on the float of its domestic tower assets, a person familiar with the matter told TelecomFinance.
The two advisers were formally hired last week, the person said,…
Italian incumbent Telecom Italia (TI) has mandated Deutsche Bank and Banca IMI to advise on the float of its domestic tower assets, a person familiar with the matter told TelecomFinance.
The two advisers were formally hired last week, the person said, suggesting that a deal, which reportedly includes 10,200 of TI’s 15,000 towers, could be announced soon.
In October, TI CEO Marco Patuano had reportedly said a sale would not be completed by the end of 2014 as initially expected, adding that the telco was evaluating two options.
Rather than selling the assets outright, management is reportedly looking to spin off the tower assets, worth an estimated €1bn (US$1.12bn), before listing them on the stock exchange.
In recent months, Italian towerco EI Towers and infrastructure fund F2i as well as Spain’s Abertis and American Tower have all been rumoured as potential bidders.
Proceeds from the listing could be used to upgrade TI’s domestic networks, as well as take part in Brazil’s consolidation process where the Rome-based telco is reviewing a tie-up between its TIM Brasil subsidiary and the country’s fourth-largest operator Oi.
Separately, TI’s rival Wind Telecomunicazioni has reportedly transferred the 6,300 towers it is looking to sell into a new company called Galata.
EI Towers and Abertis are racing for the assets, which are worth an estimated €600-700m, while US towerco American Tower, which had also submitted a binding offer for the assets, has reportedly pulled out of the bid.
TelecomFinance understands that infrastructure fund F2i, which has placed a joint offer with Providence Equity Partners, is still interested in the towers despite Italian reports suggesting the contrary.
VimpelCom-owned Wind is reportedly due to select the winning bidder within the coming days. HSBC and Banca Imi are rumoured to be advising the mobile operator on the sale.
Proceeds will be used to reduce the operator’s debt burden, which stood at nearly €10bn as of 30 September 2014.
Wind and VimpelCom declined to comment.
