Telecom Argentina divestment complete, Telecom Italia confirms

9 Mar 2016

Telecom Italia (TIM) has announced that it has completed the sale of its entire remaining stake in Telecom Argentina, following the transfer of 51% of the share capital of Sofora Telecomunicaciones – which controls majority shareholder Nortel Inversora – to Fintech Group. Despite the deal being agreed back in October 2014, final approval was only granted this month, following the introduction of the new Argentinean regulatory authority, the National Entity for Communications (Ente Nacional de Comunicaciones, ENACOM). The total amount generated by the sale is more than USD960 million, TIM noted, including this week’s receipt of USD550.6 million, and a further USD50 million ‘from agreements ancillary to the operation’.

According to TeleGeography’s GlobalComms Database, an initial 17% stake in Sofora was transferred to Fintech in October 2014, but the wider deal ran into trouble a year later when then-regulator the Federal ICT Authority (Autoridad Federal de Tecnologias de la Informacion y las Comunicaciones, AFTIC) blocked the sale, claiming that Fintech had not demonstrated sufficient experience and expertise to take control of Telecom Argentina’s infrastructure.

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