Naguib Sawiris has confirmed that he is considering buying a stake in Telecom Italia (TI) following the operator’s disclosure, earlier today, that the Egyptian telecoms investor had expressed his interest.
However, in an emailed statement to…
Naguib Sawiris has confirmed that he is considering buying a stake in Telecom Italia (TI) following the operator’s disclosure, earlier today, that the Egyptian telecoms investor had expressed his interest.
However, in an emailed statement to TelecomFinance Sawiris downplayed reports suggesting that he could invest as much as €5bn (US$6.36bn) into the Italian incumbent, describing the figure as “inaccurate and excessive”. Telecom Italia has a market cap of €12.96bn.
A document from Sawiris expressing his interest was read during a board meeting on 8 November and is currently being evaluated by the company’s management, TI said in its earlier statement.
Sawiris would invest by underwriting a new stock issue that would aim to bring “new resources to the company to be dedicated to growth projects,” TI said.
Telecom Italia’s shares peaked at €0.745 following the news of Sawiris’ interest after opening at €0.71 in the morning.
TI has considered numerous options this year to reduce its high levels of debt, which it reported as €29.5bn at the end of Q3.
In a research note analysts at Bernstein said an investment by Sawiris would be good for the company.
“Mr. Sawiris understands the Italian telecom market and its politics more completely than any other foreigner,” said Bernstein.
Sawiris previously owned the telecoms group Orascom, including its Italian subsidiary Wind Telecomunicazioni, prior to VimpelCom’s acquisition in 2011.
