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.
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.Subscribe to our daily newsletter Back