Telecom Italia Will Sell its Stake in Tower Unit for €1.6 Billion

Telecom Italia will sell 33.2 percent stake in tower unit Inwit for €1.6 billion. The operator decided to do the sale to cut its debt load.

Telecom Italia said in a statement that a consortium led by French investment group Ardian will take a 30.2 percent stake of the unit, which will be transferred into a new holding company. The two groups opened talks about the deal in May.

Upon completion of the deal, the Ardian consortium will hold a 49 percent stake in the holding company. However, Telecom Italia will continue to control and manage Inwit, together with Vodafone Group. The remaining 3 percent stake will be sold directly to an investment vehicle managed by Canson Capital Partners.

Telecom Italia and Vodafone completed a tower merger in March to form Inwit, which left them with a 37.5 percent stake apiece in the unit. They then sold 4 percent of their respective holdings for a total of €800 million. Telecom Italia’s latest move will see it use the proceeds cut its debt, which stood at €21.7 billion at the end of March. The operator said that the completion of the deal should be done by 30 September.