TI boosts share in Telecom Argentina to 21.1%

10 Mar 2011

Telecom Italia (TI) has announced that it has finalised the acquisition of a 10% stake in Sofora, the holding company that controls Argentine fixed line incumbent Telecom Argentina, from its local partner Werthein for a consideration of USD145 million. The Italian company has raised its shareholding in Sofora from 58% to 68%, which in turn has boosted its interest in Telecom Argentina from 18.3% to 21.1%. According to TeleGeography’s GlobalComms Database, Werthein and TI each held a 50% stake in Sofora until October 2010, when TI received approval from Argentina’s antitrust agency, the National Commission for the Defence of Competition (CNDC), to raise its stake in the holding company to 58%. Under a deal announced in August 2010 Werthein agreed to hand over an 8% stake in Sofora to TI, enabling the Italian company to raise its shareholding to 58%. In return, TI agreed to drop an ongoing battle to enforce a 2009 put option that would have allowed it to buy out Sofora with immediate effect. The firm received a new option to buy out the Werthein group in 2013.