Telecom Italia (TI) announced on 10 March that it has bought a 10% stake in Sofora, the holding company of incumbent Telecom Argentina, for US$145m.
TI now controls 68% of Telecom Argentina’s capital (up from 58%), while its economic interest has risen…
Telecom Italia (TI) announced on 10 March that it has bought a 10% stake in Sofora, the holding company of incumbent Telecom Argentina, for US$145m.
TI now controls 68% of Telecom Argentina’s capital (up from 58%), while its economic interest has risen from 18.3% to 21.1%.
The seller was local investment group Werthein, which had originally been a 50/50 owner of the Sofora JV alongside TI.
In November 2010, the authorities granted TI permission to increase its stake, in spite of competition concerns.
Spanish telco Telefonica indirectly owns a stake in TI.
Telefonica also controls the leading fixed-line telco Telefonica Argentina.
TI, however, was able to give assurances that Telefonica would have no influence over Telecom Argentina, a provider of fixed-line and internet services.
It announced its 2010 results on 21 February, showing an operating profit of over US$3.2bn (up 16% from 2009) and a net income of more than US$1.8bn (up 30% from 2009).
