Telecom Italia seals €1.6B tower unit sale - Mobile World Live

Telecom Italia seals €1.6B tower unit sale

25 JUN 2020

Telecom Italia struck deals to offload its 33.2 per cent stake in tower unit Inwit for €1.6 billion, in a move designed to cut its debt load.

In a statement, Telecom Italia said a consortium led by French investment group Ardian will take a 30.2 per cent stake of the unit, which will be transferred into a new holding company. The two groups opened talks about the deal in May.

Upon completion of the deal, the Ardian consortium will hold a 49 per cent stake in the holding company.

However, Telecom Italia will continue to control and manage Inwit, together with Vodafone Group.

Telecom Italia added it will sell its remaining 3 per cent stake directly to an investment vehicle managed by Canson Capital Partners.

Debt reduction
Telecom Italia and Vodafone completed a tower merger in March to form Inwit, which left them with a 37.5 per cent stake apiece in the unit.

They then sold 4 per cent of their respective holdings for a total of €800 million.

Telecom Italia’s latest move will see it use the proceeds cut its debt, which stood at €21.7 billion at the end of March.

The operator added completion of the deal is subject to a number of conditions being met by 30 September 2020.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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