October 03, 2024 07:26 GMT
COMMUNICATIONS: Telecom Italia Receives Lower Offer For Sparkle Unit
COMMUNICATIONS
Ba3[P]/BB/BB EUR Spreads 3-7bps Tighter
Price discrepancy not particularly relevant given the scale of the business (EUR 26.5bn in net financial debt); equity is higher and spreads tighter today
- Italy, in partnership with Asterion Industrial Partners via Retelit SpA, made a new bid for Telecom Italia's Sparkle unit, valuing it at EUR 700mn.
- Prior EUR 750mn offer from Italy for Sparkle in which Telecom Italia considered keeping minority stake was rejected earlier in the year. BBG news reported on a new EUR 800mn offer back in March and a “slightly higher” bid in September.
- The offer remains valid until 15 Oct.
- Sparkle, which operates over 600,000 km of subsea cables critical for global data flow, is seen as a strategic asset by the Italian government.
- Telecom Italia, after its recent EUR 22bn fixed-line network sale to KKR, is focusing on market consolidation, including evaluating this offer for Sparkle.
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