TIT Telecom Italia SpA

   By Anthony Shevlin 
 

Telecom Italia SpA (TIT.MI) said Wednesday that it reached a binding agreement with F2i and EI Towers for the sale of its holding in Persidera SpA based on an enterprise value of 240 million euros ($270 million).

The Italian company said F2i bought a 70% stake and EI Towers bought a 30% stake.

The deal remains subject to approval by authorities and involves the demerger of Persidera into two separate entities before closing, which is expected to happen in the fourth quarter.

"One of the demerged entities will continue to hold Persidera's five digital terrestrial frequencies and associated revenue-earning contracts and staff, while the other will absorb all the network infrastructure and associated staff," Telecom Italia said. "F2i will acquire the entire share capital of the new Persidera while EI Towers will acquire 100% of the new network infrastructure company."

The expected impact on Telecom Italia's net financial position reduction for 2019 is around EUR160 million, the company said.

The deal is part of Telecom Italia's strategy to streamline is portfolio and focus on its core business.

Write to Anthony Shevlin at anthony.shevlin@dowjones.com; @anthony_shevlin

(END) Dow Jones Newswires

June 05, 2019 02:45 ET (06:45 GMT)

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