Telefonica has revealed that the formal demerger of Telco, Telecom Italia’s controlling shareholder group, is on track, paving the way for the stakeholders to sell their shares in the near future.
The Telco deed of demerger was completed on Wednesday, the Spanish incumbent said in a statement to Spain’s securities market regulator the CNMV. The deed will become effective from the date on which it is entered in the companies’ register, Telefon ica said.
Once the registration is complete, each of the Telco members will receive its own stake in Telecom Italia, held via a newly-established vehicle.
The firms together hold 22.3% of Telecom Italia’s share capital. The bulk of that – 14.72% – will go to Telefonica, which has set up a company called Telco TE to hold its stake. Generali will take a 4.31% stake, while Intesa Sanpaolo and Mediobanca will hold 1.64% each.
At the same time, " the shareholders’ agreement in force between the shareholders in Telco shall cease to have effect," Telefonica said.
The Telco shareholders agreed to go their separate ways in June last year. The break-up has taken some time because it required various regulatory approvals, including the green light from antitrust bodies in Argentina and Brazil, where Telefonica and Telecom Italia have competing operations.
Telefonica last month completed the acquisition of Brazilian broadband operator GVT from its former parent Vivendi. Under the terms of the deal, Telefonica will transfer an 8.3% stake in Telecom Italia to Vivendi. The Telco demerger will facilitate that transfer.
The other shareholders in the Telco partnership will also be free to sell their holdings once the demerger is completed.
