Telecom Italia (TI) is open to foreign investors, as long as they bring value to the company and its shareholders, chairman Giuseppe Recchi said at a shareholders meeting.
“We refute the logic that foreign investments in Telecom Italia are dangerous:…
Telecom Italia (TI) is open to foreign investors, as long as they bring value to the company and its shareholders, chairman Giuseppe Recchi said at a shareholders meeting.
“We refute the logic that foreign investments in Telecom Italia are dangerous: whoever brings capital and know-how contributes to making our group stronger, regardless of whether the investor is Italian or foreign,” he pointed out.
The remarks came as French media group Vivendi becomes the telco’s single largest shareholder, after acquiring Telefonica’s 8.3% voting rights in TI, as part payment for the purchase of Brazilian broadband provider GVT.
TI’s holdco, Telco Spa, whose investors include Generali, Mediobanca and Intesa, in addition to the Spanish operator, will also be dissolved.
According to the corporate governance changes approved on Wednesday, directors representing the main investor group will have only two thirds of the board seats, against four fifths currently.
Commenting on the company’s relationship with its new shareholder, TI CEO Marco Patuano said: “Pending ownership developments, the relationship with [Vivendi Chairman Vincent] Bollore today is that with a big media company.”
Last week, Vivendi CEO Arnaud de Puyfontaine said during an earnings call that the company’s stake in Telecom Italia is “opportunistic”.
Vivendi saw the stake as a way to de-risk the transaction from currency impact, and “an opportunity to create a link with the company”, the CEO said.
He added that Vivendi, which has nearly exited telecoms investments in France, Brazil and Morocco, with a view to focusing on media and content, does not intend to re-enter the telecoms business.
However, de Puyfontaine pointed out that the company will seize any opportunities which would add value to its media and content business, possibly hinting at recent media speculation that the French group is looking to increase its position in Telecom Italia and merge it with Italian broadcasting giant Mediaset.
Yesterday, TI’s Recchi said Telecom, which is valued at €20.47bn, would be an open distribution platform for top content providers such as Sky, Mediaset and Netflix.
The company also reportedly said that it intends to continue investing in Brazil, playing a leading role in the country’s consolidation process.
Increase in fibre investments
Recchi also reiterated the company’s support to for government’s digital strategy, although he warned that there is still a lot of confusion and regulatory uncertainty around the high-speed broadband plan.
Management committed to raise investments in fiber–to-the-home in 40 Italian cities from €500m to € 650-700m, but also pointed out that such investments must generate shareholders’ returns and be sustainable “from a financial and industrial point of view”.
Commenting on the failed Metroweb deal, Recchi said that the company has no “preconception with regard to the idea of undertaking a common journey with other parties”, as long as the terms of the agreement bring value for TI shareholders.
“We cannot be asked to give up what we are. As far as building and management telecoms network is concerned, we are the number one. The new networks are our way to create long-term value for our shareholders and our customers,” he said.
Moves ahead with Inwit IPO
The operator also announced its plan to proceed with the IPO of its tower spin-off, Inwit.
The company will list up to 40% of the unit, which consists of 11, 500 mobile sites, on the Milan bourse’s MTA segment, subject to regulatory approval.
TI has appointed Banca IMI, Deutsche Bank and Mediobanca as global joint coordinators and joint bookrunners, while UBS is acting as joint bookrunner.
The debt-laden company posted €21.6bn in 2014 revenues, down 5.4% on the previous year, with a €8.8bn EBITDA. Net debt amounted to €26bn.
