Telecom Italia to cut debt by offloading Entel stake

25 Jan 2005

Italy’s dominant telecoms company Telecom Italia (TI) says it is selling its 54.76% stake in Empresa Nacional de Telecommunicaciones (Entel) of Chile, to Chilean holding company Almendral for USD934 million. The Milan-based company plans to use the proceeds to reduce the group’s net debt by around USD1.43 billion; the sale will be completed within three months. TI’s board yesterday announced it had agreed to forge ahead with a planned EUR21 billion buyout of shares in its majority owned mobile arm Telecom Italia Mobile, which will raise its debt to the highest of Europe’s former phone monopolies.

Chile, Italy, Entel Chile, Telecom Italia (TIM)