Davide Leone decided to bet on Tim savings shares, buying 10% of it. This is not just any move: his strategy seems to focus on the opportunity to cash in on the dividends backlog which Tim has not distributed in the last three years due to losses in the balance sheet. If things go as hoped, the Italian manager, founder of the London hedge fund Dl&Partners, could reach collect up to 51 million euros, considering both arrears and future dividends.
Confirmation of Leone's entry came from a representative of Dl&Partners, contacted by Reuters. Leone himself, in an interview with La Repubblica, explained his vision: the sector of the telecommunications in Europe it is today underrated, just as the banking sector was a few years ago, when it decided to invest in Banco Bpm, becoming one of the largest shareholders of the Italian bank. It currently holds a potential 5% stake in Banco Bpm, of which 2,2% with voting rights. The founder of Dl&Partners believes that market consolidation and falling interest rates, together with possible regulatory changes at EU level, can unlock value in Tim and the sector. Strategic operations such as the sparkle sale, the international branch of Tim, and the possible merger with Open Fiber could, in his opinion, create a positive impact for all shareholders, including savings shares.
Tim savings shares: here's how much Leone can collect
Le savings shares of Tim, unlike ordinary ones, give the right to a privileged dividend, established in the company's bylaws. According to company rules, Tim should distribute 5% of 0,55 euros for each savings share, but this has not happened in the last three years due to balance sheet losses. Leone, through his hedge fund Dl&Partners, has bought up 10% of these shares, that could earn him up to 17 million euros a year, once that Tim will return to generating profits. But there's more: savings shareholders also have the right to carry forward arrears of dividends for two years. This means that Leone could collect up to 34 million from unpaid dividends in previous years, in addition to the 17 million relating to the year of profit, for a total of 51 million.
Davide Leone bets on Tim and the stock rises
Leo's bet It is not without risk, but not unfounded. The telecommunications market could soon undergo a consolidation in Europe, and Davide Leone, already an expert in investments in the banking sector, sees potential in Tim, just as he had seen it when he invested in Banco Bpm. In that case too, Leone had identified an undervalued sector with great potential for recovery, a bet that later paid off.
Tim shares closed yesterday's session up 1,41%, while today they gained a further 0,24%, a sign that the market seems to be positively receiving Leone's move.
