COMMUNICATIONS
- Reuters sources that reporting that TITIM is seeking to engage with shareholders to streamline its equity structure by eliminating savings shares.
- The report outlines confidentiality agreements with Vivendi and CDP to discuss the plans, aiming to minimize shareholder rejection risks.
- Article again notes the CVC-Vivendi talks but doesn’t offer anything new with TITIM and CVC declining to comment. The TITIM short end has widened since the talks were reported.
- Management also considering integrating two Luxembourg-based holding companies that TITIM uses to issue debt into the parent company.
- With just over 6bn savings shares outstanding at a current price just under 30c, the savings shares have a capitalisation of EUR ~1.7bn which would imply a ~0.5x hit to 9M24 leverage before any premium is considered. A 100% buyback isn’t a likely option though, with a conversion to ordinary shares a more logical approach in our view (as was proposed in 2015 but rejected by shareholders) due to the smaller cash outflow required (the conversion would likely be accompanied by a smaller, one-off cash payment).
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