Telecom Italia (TI) CEO Marco Patuano has said the company would consider selling Brazilian unit TIM Brasil for the right price.
Speaking at an industry conference in Barcelona, Patuano said TI would look at a large, unsolicited offer for the Brazilian…
Telecom Italia (TI) CEO Marco Patuano has said the company would consider selling Brazilian unit TIM Brasil for the right price.
Speaking at an industry conference in Barcelona, Patuano said TI would look at a large, unsolicited offer for the Brazilian unit, which accounts for about a quarter of the group’s revenues. However, he echoed his previous comments that TIM is an important strategic asset.
Bloomberg quoted Patuano as saying TI aims to secure a decent return on its investment in Brazil as it expects the telecoms market there to remain strong over the coming years.
He noted that this return could take the form of profits from the Brazilian unit or the purchase price paid by another company.
Rumours that TI might sell the Brazilian unit emerged some time ago and gained momentum when Spain’s Telefonica agreed to gradually increase its stake in the Italian incumbent’s main shareholding vehicle, Telco. Telefonica owns TIM’s Brazilian rival Vivo.
Tower sales moving ahead
TI plans to complete the sale and lease back of towers in Italy and Brazil in 2014, Reuters quoted Patuano as saying at the conference.
Patuano reportedly said the process is more advanced in Italy, where marketing could take place in Q2 next year. The process in Brazil is at an early stage, he noted.
The disposals form part of TI’s recently-unveiled three-year strategic plan designed to raise €4bn, which will also see the telco divest domestic TI Media multiplexes. The plan has already seen TI issue a €1.3bn converitible bond and sell its 22.7% stake in Telecom Argentina to US investor Fintech Group for US$960m.
