TI to review Argentine unit sale, extends deadline

29 Sep 2014

The board of directors of Telecom Italia (TI) has asked the management to evaluate and define possible amendments to the sale process of its entire controlling stake in Telecom Argentina to investment company Fintech. Last November TI agreed to sell its Argentine unit to Mexican billionaire David Martinez’s Fintech for USD960 million, as it seeks to cut its debt in the face of rising competition in its domestic market and the economic downturn in Europe. Since then, TI has had to extend the deadline for completion of the sale twice, as it awaits regulatory approval from antitrust authorities in Argentina. In a statement released on Friday, TI said the negotiations will follow a term sheet setting out certain principles to manage the delay in obtaining regulatory approval, including certain guarantees for the company. In the meantime, as proposed by Fintech, the agreement entered into last year will remain in force until 24 October 2014.

Argentina, Telecom Argentina (incl. Cablevision), Telecom Italia (TIM)