Telecom Italia, Vodafone selling INWIT stake

Telecom Italia and Vodafone have completed the previously announced divestment of an 8.0 per cent shareholding in Italian mobile tower company Infrastrutture Wireless Italiane (INWIT) in a bid to lower their debt levels.

Under the terms of the deal, the parties each jettisoned 41.70 million stocks in the business, a wireless network infrastructure player, amounting to a combined 8.6 per cent stake.

The shares were sold at EUR 9.60 each, thereby valuing the transaction at EUR 800.64 million.

Proceeds have been earmarked for the repayment of some of Vodafone and Telecom Italia’s debts; their combined stake in the company will drop from 37.5 per cent to 33.2 per cent as a consequence, with the parties having equal holdings.

Settlement of the sale is scheduled to take place on 27th April.

Telecom Italia and Vodafone combined their mobile tower operations into INWIT in July of last year and subsequently announced plans to sell a stake of up to 25.0 per cent in the business.

INWIT describes itself as Italy’s major tower operator and provides coverage throughout the country.

The company is in the process of setting up a distributed antenna system which will guarantee coverage in densely populated urban areas, as well as in shopping centres, concert halls, sporting venues and hospitals.

It employs 117 people.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 69 deals worth a combined USD 6.95 billion targeting wireless telecommunications carriers announced worldwide since the beginning of 2020.

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Of these, two were worth in excess of USD 1.00 billion. The top deal saw Rostelecom agree to acquire the remaining 55.0 per cent stake it did not already own in Tele2 from Tele2 Russia Holding for USD 1.76 billion.

It was followed by the USD 1.20 billion rights issue announced by Mobile Telecommunications Company Saudi Arabia in February.

© Zephus Ltd

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