Telecom Italia aims to take sole control of its media unit by buying out minority investors, it announced late Thursday.
The Italian incumbent owns 77.71% of Telecom Italia Media. It has offered to exchange ordinary shares for 0.66 of its own ordinary shares and savings shares for 0.47, it said in a statement.
According to Reuters, buying out the remaining shares will cost Telecom Italia around €25 million.
The move will bring about the rationalisation and simplification of the group structure, the telco said, as well as eliminating the listing costs associated with Telecom Italia Media. Those costs are no longer justified since Telecom Italia Media’s assets now consist solely of its investment in broadcasting company Persidera, and due to the poor liquidity of the shares.
Shareholders of the two companies will be asked to approve the plan at meetings in April and May, and the firms expect to complete the merger by the end of the third quarter of this year.
Also on Thursday, Telecom Italia Media reported fin ancial results for 2014, highlighting a stabilisation in its revenues and reduction of losses.
The firm posted full-year revenues of €70.5 million, down just over 2% on 2013, while EBITDA came in at €25.4 million, down €4.8 million on-year. Its net loss was €5.3 million, compared with a loss of €132 million in 2013.
