Telecom Italia shareholders agree new financing

News General Italy 4 MEI 2012
Telecom Italia shareholders agree new financing
The board of Telco, the controlling shareholder in Telecom Italia, agreed to a capital increase of EUR 600 million. Telco is owned by Telefonica, Assicurazioni Generali, Mediobanca and Intesa Sanpaolo and owns a 22.4 percent stake. Each shareholder will subscribe to the capital increase pro rate to their stake in Telco. Telco will also issue a new EUR 1.75 billion bond and receive a new banking facility of around EUR 1.05 billion, to refinance debt falling due between May and October this year. In addition, the board meeting acknowledged the resignation of Mario Martin as board member designated by Telefonica, and appointed Natalia Sainz Stuyck as a new board member. Telco approved its accounts for the nine months to 31 January, showing a loss of EUR 1.0 billion. This includes an impairment charge of EUR 901 million on the stake in Telecom Italia. The carrying value of the stake is now EUR 4.51 billion, or EUR 1.50 per share.

Categories:

General

Companies:

Telefonica- Movistar,  Telecom Italia

Countries:

Italy

Tags:

Shareholders & subsidiaries, Financial funding

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