Argentine TMT regulator Enacom has reportedly approved Telecom Italia’s (TIM) sale of its stake in Telecom Argentina to investment firm Fintech. Former regulator AFTIC had nixed the deal in October 2015, saying US-based Fintech was “not in a position to operate and take control” of the local incumbent since it had “demonstrated neither experience nor expertise”.
Argentine TMT regulator Enacom has reportedly approved Telecom Italia’s (TIM) (BIT:TIT) sale of its stake in Telecom Argentina (BCBA:TECO2) to investment firm Fintech.
TIM agreed to sell its 22.7% indirect stake in Telecom Argentina to Fintech, led by low-profile Mexican financier David Martínez Guzmán, in 2013 for some US$960m.
Enacom’s predecessor AFTIC blocked the deal in October 2015, saying US-based Fintech was “not in a position to operate and take control” of the local incumbent since it had “demonstrated neither experience nor expertise”.
Reuters cited a source at Enacom as saying the regulator approved the deal yesterday.
AFTIC, which had been seen as heavily influenced by former Argentine president Cristina Fernández de Kirchner, was dissolved and replaced by the depoliticised Enacom after her party was voted out of office in late October 2015.
Last month, Fintech made a bid for the 45.23% of Telecom Argentina shares listed in Buenos Aires, offering Ps46 (US$3.02) per share. The offer period runs for 20 working days from 24 February and may be extended for an extra five working days if necessary. This transaction is also subject to Enacom’s approval.
Reuters also reported that Enacom had approved media group Clarín’s (BCBA:GCLA) takeover of Nextel Communications Argentina from NII Holdings(NASDAQ:NIHD).
US-based NII announced in late January that it had completed the sale of mobile operator Nextel to Clarín subsidiary Cablevision, transferring the remaining 51% stake in the target.
NII, advised by Jones Day, and Clarín revealed in mid-September that they had formed a strategic alliance which had seen the latter buy a 49% stake in Nextel for US$159m. Under the terms of their agreement, Clarín had the option to purchase the remaining 51% following regulatory approval and pay the rest of the total US$178m consideration.
However, AFTIC nixed the deal later in September, saying the parties had failed to seek an official go-ahead before inking the deal.
Nextel, present in Argentina since 1998, is the fourth largest mobile operator with a 3% market share. The market is led by América Móvil’s Claro (33%), Telecom Argentina (32%) and Telefónica (32%).
Telecom Italia, Fintech, Clarín, Nextel and Enacom were not immediately available for comment.