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Telecom Italia says the sale will help it reduce its levels of debt
Telecoms Italia has announced the sale of its broadcasting arm, Persidera, as the company looks to reduce its levels of debt. TIM is selling Persidera based on an enterprise value of €240 million ($270 million), to Italian based infrastructure investment fund, F2i and regional broadcast firm, EI Towers.
Telecom Italia confirmed that the sale would reduce its levels of debt by around €160 million.
"The expected overall impact on the Group’s NFP reduction in 2019 is of approximately €160 million; such amount includes the consideration for the 70% held to be collected at the closing, the dividends distributed by the company and the effect of the deconsolidation of Persidera’s debt," Telecom Italia said in a statement to the press.
While the sale of Persidera will allow Telecom Italia to chip away at its levels of debt, the company still remains €25.1 billion in the red.
"The deal is consistent with TIM’s Industrial Plan disclosed to the market on 21 February 2019 and is part of the wider process of streamlining the company’s portfolio and focusing on its core business. The agreement is also consistent with TIM and GEDI’s plan to enhance and extract value from Persidera since they created their partnership in 2015 by integrating their respective television frequencies and associated assets," the Telecom Italia statement read.
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