Argentine communications regulator Secom will clear Telecom Italia (TI)’s sale of its stake in Telecom Argentina by June, according to an Italian report.
The go-ahead would coincide with the competition authority CDNC’s approval of the break-up of…
Argentine communications regulator Secom will clear Telecom Italia (TI)’s sale of its stake in Telecom Argentina by June, according to an Italian report.
The go-ahead would coincide with the competition authority CDNC’s approval of the break-up of Telecom Italia’s holding, Telco Spa, which is also expected by early June, Il Sole 24 Ore reported.
Secom declined to comment, while the CNDC did not respond to a request for comment.
Last October, the Rome-based telco sold a 17% stake in Sofora, through which it owns an interest in Telecom Argentina, to US investment firm Fintech for US$215.7m, with a view to divesting the remaining 51% interest over the following 30 months, subject to regulatory approval.
TI overall owns 68% of Sofora, which in turn has a 51% stake in Nortel Inversora, the investment vehicle holding 55% of the Argentine operator.
Fintech, which is owned by Mexican billionaire David Martinez, agreed to acquire TI’s 22.7% indirect stake in Telecom Argentina for US$960m in November 2013.
However, the sale has been delayed, reportedly because of both Secom’s concerns about Fintech’s 40% interest in leading cableco Cablevision, and opposition by president Cristina Kirchner, a long-time friend of Martinez.
If the sale is not completed within the agreed period, TI could terminate the agreement and receive a six-month call option to buy back the 17% stake from the US firm. It could also sell the remaining 51% to another buyer, under a guarantee scheme with Fintech that ensures it is paid at least the same amount.
