Telecom Italia has announced a full takeover of its media division, Telecom Italia Media, which has been a publicly traded company for over a decade. The buyout of TI Media, already 78 percent owned by the phone company, will cost around EUR 25 million. In a joint statement, the two companies said Telecom Italia will offer 0.66 ordinary shares and 0.47 saving shares for each share of the same category in Telecom Italia Media. Investors in the media division can exercise a withdrawal right and receive cash at market prices. The companies said they expected Telecom Italia Media to be merged into Telecom Italia by the end of the third quarter.
Simplification of the group’s corporate structure and reduction of expenses were given as the main reasons for the buyout. Telecom Italia didn’t rule out delisting TI Media as part of the plan, suggesting it may delist the unit if it fails to sell a stake in Persidera, the network operator set up with media group L'Espresso last year. Last month TI Media confirmed it wouldn't be selling a stake in Persidera at the present time because the bids received were not in line with expectations. Persidera is 70 percent owned by TI Media and is the unit's only remaining shareholding following the 2013 sale of channels La 7 and MTV Italia to Cairo Communications and Viacom International.
