Telecom Italia CEO confident on submarine unit, tower stake sales
Seeking to raise around 1 bln euros from disposals
Treasury-led consortium expected to bid for Sparkle
Discussing sale of residual INWIT stake to Ardian
Update with further details from sources, analyst call in paragraphs 5-11
By Elvira Pollina
MILAN, Aug 1 (Reuters) -Telecom Italia (TIM) TLIT.MI Chief Executive Pietro Labriola on Thursday expressed confidence aboutthe disposals of the phone group's submarine cable unit Sparkle and TIM's remaining stake in telecoms tower company INWIT INWT.MI.
TIM is seeking to raise around 1 billion euros ($1.1 billion) from the sales, having just completedthe sale of its domestic fixed-line network to U.S. fund KKR<KKR.N>for 18.8 billion euros, excluding potential future payments.
"We are quite optimistic over the finalisation of the two deals," Labriola told an analyst call.
Sources have previously said TIM is in talks with a consortium led by the Italian Treasury to sell Sparkle, after it rejected an offer from the Treasury reportedly worth up to 725 million euros earlier this year.
TIM is also looking to sell its residual holding in INWIT and it is discussing a potential deal with French fund Ardian, two sources familiar with the matter told Reuters.
TIM holds about 10% in a vehicle which owns nearly 30% of Milan-listed INWIT. French firm Ardian already controls 90% of that vehicle.
At current market prices, the TIM stake would have a value of less than 300 million euros.
Labriola said TIM would notsplit its domestic services operation into two separate companies, continuing to run its consumer and enterprise arms as business divisions within the group.
TIM shares rose 2% by 1200 GMT after TIM reporteda 10% core profit rise in the first half for the group left after the network sale.
Core earnings were mainly sustained by TIM's Brazil-listed business and its fast-growing domestic enterprise arm, which provides big corporate clients with cloud and connectivity services.
Labriola reiterated the main focus for TIM domestic operations was to grow organically, but he did not rule out the company could play an active role in M&A both in the consumer and enterprise segment. ($1 = 0.9273 euros)
Reporting by Elvira Pollina
Editing by Keith Weir and Valentina Za
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
