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ENACOM also approves sale of Nextel Argentina to Grupo Clarin, source confirms.
Telecom Italia has finally secured the regulatory green light to sell its controlling stake in Telecom Argentina, according to media reports on Thursday, while the watchdog has also given the final nod to Grupo Clarin’s acquisition of mobile operator Nextel.
Citing a source at new regulatory body the Ente Nacional de Comunicaciones (ENACOM), Reuters reported simply that both deals have the approvals they need to go ahead.
ENACOM has replaced previous ICT regulator the Autoridad Federal de las Tecnologías de la Información y las Comunicaciones (AFTIC) and media watchdog AFSCA.
AFTIC initially stood in the way of both deals.
Telecom Italia agreed to sell its 68% stake in Sofora, Telecom Argentina’s holding company, to investment company Fintech for US$960 million as long ago as November 2013, but regulatory objections meant it was unable to close the deal. The companies renegotiated in October 2014, retaining the price tag but building in a lengthy timeframe to gain AFTIC’s approval. The companies have until spring 2017 to complete the deal.
To complicate matters, in October last year AFTIC blocked the deal on the grounds that Fintech lacks the experience to manage Telecom Argentina and the sale would leave the telco solely in the hands of investors. Telecom Italia said it would fight on though, and this year it became clear that the new regulator would likely find in its favour.
ENACOM has also rubber stamped Grupo Clarin’s $178 million purchase of Nextel Argentina from NII Holdings, Reuters’ regulatory source said.
The media group announced in late January that it had completed the transaction via its Cablevision unit, but said it still required ENACOM’s approval.
The deal gives Grupo Clarin access into Argentina’s mobile market and leaves NII Holding to concentrate on its one remaining mobile operation, Nextel Brazil.
