Telecom Italia has executed the break-up of its holdco Telco Spa, according to a securities filing.
Telco’s shareholders – Spain’s Telefonica, Generali, Intesa Sanpaolo and Mediobanca − currently hold a combined 22.3% in TI.
Further to the…
Telecom Italia has executed the break-up of its holdco Telco Spa, according to a securities filing.
Telco’s shareholders – Spain’s Telefonica, Generali, Intesa Sanpaolo and Mediobanca − currently hold a combined 22.3% in TI.
Further to the demerger, Telefonica will own a 14.72% stake, Generali will be allocated 4.31%, while Intesa Sanpaolo and Mediobanca will have 1.64% each.
The shareholders’ agreement in place among Telco investors will cease to have effect, once the dissolution is completed, allowing each shareholder to divest its shares.
Telefonica will transfer 8.3% of its TI voting rights to French media group Vivendi as part-payment for its acquisition of Brazilian broadband player GVT.
Yesterday, rumours resurfaced that Vivendi aims to raise its interest in the Italian telco to between 10% and 15%.
Prices Inwit IPO
Meanwhile, TI has priced the IPO of its tower spin-off Inwit at €3.65 per share, for a total value of €875.3m, should the 10% greenshoe option be fully exercised.
The greenshoe option may be exercised within 30 days from the start of trading, scheduled for 22 June, the company said in a statement.
TI will raise a minimum of €779.8m in net proceeds, excluding the overallotment option.
Telecom Italia will list up to 40% of Inwit on the Milan Bourse. However, TI CEO Marco Patuano said that that it could reduce its stake to less than 50%, provided that the incumbent continues to be part of the towerco’s board.
“We are interested in maintaining a business link [with Inwit], not a controlling position,” Patuano recently pointed out.
Proceeds from the offering will mainly be used to reduce TI’s debt burden and speed up nationwide fibre deployment for both fixed and mobile applications, the CEO said.
The telco recently said it would increase its FTTH investment for 40 Italian cities from an initial €500m to €650-700m, in line with the government’s recently-launched high-speed broadband plan.
Banca IMI, Deutsche Bank and Mediobanca are acting as global joint coordinators and joint bookrunners on the IPO, while UBS is serving as joint bookrunner.
