Shareholders in Telco, the holding company that controls Telecom Italia, are set to meet this week to discuss a capital increase to be used to help refinance debt.
Representatives from Assicurazioni Generali, Mediobanca, Intesa Sanpaolo and…
Shareholders in Telco, the holding company that controls Telecom Italia, are set to meet this week to discuss a capital increase to be used to help refinance debt.
Representatives from Assicurazioni Generali, Mediobanca, Intesa Sanpaolo and Telefonica – which collectively hold a 22.39% stake in Telecom Italia via Telco– plan to meet on 3 May to discuss the details of the increase, a Mediobanca spokesperson said.
The size of the increase will relate to the amount of Telco debt due to expire in the coming months, he said.
In late February, Telco issued a statement saying its shareholders had agreed to refinance soon-to-expire debt and were exploring options for doing so. They also agreed to renew their shareholders’ agreement for three years until February 2015.
According to Bloomberg, Telco has more than €2bn (US$2.6bn) of bank loans expiring this year, of which €1.3bn matures in May. Its shareholders have also subscribed to €1.3bn in bonds which mature this year but can be extended to next year.
In April, Telecom Italia, which recorded a net loss of €4.73bn for 2011, confirmed it was exploring “strategic options” for reducing debt, minimising the likelihood of having to make further dividend cuts and boosting its fibre network.
