News
Italian incumbent offloads 51% of holding company Sofora for $550.6 million.
Telecom Italia on Wednesday completed the protracted sale of Telecom Argentina, after receiving regulatory approval for the deal.
The Italian incumbent announced it has sold its remaining 51% stake in Sofora Telecomunicaciones – Telecom Argentina’s holding company – to Fintech for US$550.6 million.
When combined with the $329.5 million raised from Sofora stake sales to Fintech in December 2013 and October 2014, plus $50 million from other ancillary agreements between the two parties, and future revenues generated by providing technical support to Telecom Argentina’s new owners, the total sum raised by the sale comes to more than $960 million.
"The sale was completed after having received the approval of ENACOM, the Argentine communications regulator," said Telecom Italia, in a brief statement.
Telecom Italia first agreed to sell Telecom Argentina to Fintech in November 2013, but ENACOM’s predecessor, the Autoridad Federal de las Tecnologías de la Información y las Comunicaciones (AFTIC), objected to the proposed transaction.
Telecom Italia and Fintech renegotiated the deal in October 2014, retaining the price but adding a long timeframe for gaining regulatory approval. Yet again, AFTIC intervened, blocking the deal on grounds that Fintech lacked the experience to manage a telco.
However, the deal appears to have found favour with new regulator ENACOM.
Reports emerged in late February claiming it was close to approving the transaction. These were followed by a separate report late last week claiming that the deal had in fact been approved. Wednesday’s announcement has finally put the matter beyond doubt.
