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Telecom Italia investor to refinance €1.1bn
19 November 2009
Telco, which owns a controlling 24.5% stake in Telecom Italia, is to refinance €1.1 billion of debt which is due in December
Comment: There continues to be speculation about the long term ownership of Telecom Italia. There is an inevitable move towards consolidation and as part of this Telefónica seems destined eventually to take control.
Shareholders in Telco, the holding company for a controlling stake in Telecom Italia, are planning to refinance about a third of the company’s debt. The total debt amounts to about €3.5 billion, of which €1.1 billion is due in December 2009.
Telco’s shareholders include Telefónica, along with Italian banks Intesa Sanpaolo, Mediobanca and insurer Assicurazioni Generali.
The parent company’s shareholders will be refinancing the debt according to their respective stakes in Telco. Its shareholders belong to a pact that controls 24.5% of Telecom Italia.
The Benetton family belonged to the pact through its Sintonia investment vehicle, which was terminated in October when other shareholders renewed the pact for three years.
Sintonia will, however, refinance the part of the debt to which it is exposed. The share of debt linked to Sintonia will be transferred at the time of its exit from Telco, which is likely to happen by the end of 2009. GTB