Telecom Italia (TI) has issued a strongly-worded statement denying it is in negotiations with any bidder to sell its majority stake in mobile operator TIM Brasil, emphasising the strategic importance of the asset.
Responding to a request for…
Telecom Italia (TI) has issued a strongly-worded statement denying it is in negotiations with any bidder to sell its majority stake in mobile operator TIM Brasil, emphasising the strategic importance of the asset.
Responding to a request for clarification from the Italian Securities and Exchange Commission Consob, TI said it had no plans to offload TIM Brasil.
In the announcement, it denied there were any “ongoing contacts with potential buyers of the subsidiary, that a sale or combination with other operators are being pursued or that purchase offers have been received, not even unsolicited”.
Speculation about a TIM Brasil disposal has mounted since Telefonica said, a few months back, that it plans to increase its stake in TI’s controlling shareholder group Telco. This would give the Spanish giant the option to take control of TI, thus giving it power over Brazil’s two largest mobile operators: Vivo, its current subsidiary, and TIM Brasil.
According to multiple reports, Telefonica favours TI selling its Brazilian operator. The Italian operator’s debt has been downgraded to junk by Moody’s and Fitch over recent months and is under pressure to bolster its balance sheet.
In early November its board outlined a three-year strategic plan designed to raise up to €4bn (US$5.3bn). This took the form of a €1.3bn (US$1.75bn) mandatory convertible bond, issued last month, and asset sales.
TI has already agreed to sell its controlling stake in Telecom Argentina to Mexican financier David Martinez. His Fintech vehicle paid US$960m for TI’s 22% stake in the Argentinian incumbent.
TI has also said it is also looking to sell multiplex cinemas held by its media division and wireless towers in Brazil and Italy. Last week the operator was reported to have mandated Morgan Stanley to explore sale options for its Brazilian tower portfolio.
