The assignment of Telecom Argentina to Fintech postponed to September XNUMXst, but the conditions of the contract do not change. Yesterday evening, the two companies "agreed to extend until September 13st next, the terms and conditions remaining unchanged, the validity of the purchase and sale agreement signed on November 2013th XNUMX, relating to the sale of the entire controlling stake held, directly and indirectly, from Telecom Italia to Telecom Argentina”, reads a note from the Italian group.
Yesterday, from Telecom Italia's half-yearly report, it emerged that Argentina's default, according to the company, it will have no impact on the planned sale of the subsidiary Telecom Argentina: "It should be remembered - it is written in the report - that the price for the sale of the Sofora-Telecom Argentina Group has been defined in US dollars, consequently in this transaction the Telecom Italia Group is not subject to the risk on the trend of the exchange rate of the Argentine Peso”.
On November 14, 2013, Telecom Italia announced that it had accepted the purchase offer of the entire controlling interest held in Telecom Argentina (directly and through Telecom Italia International, Sofora Telecomunicaciones, Nortel Inversora and Tierra Argentea) made by the Fintech group for a total amount of 960 million dollars.
In detail, 859,5 million dollars will be paid for the sale of 68% of the ordinary shares of Sofora owned by Telecom Italia and Telecom Italia International (750,8 million dollars), 15.533.834 class B shares of Telecom Argentina, equal to 1,58% of the share capital, owned by Tierra Argentea (61,2 million dollars), of 2.351.752 American Depositary Shares, corresponding to 117.588 preferred class B shares of Nortel, equal to 8% of preferred class B shares, owned by Tierra Argentea ($47,5 million).
The remaining amount of $100,5 million will be paid against additional agreements related to the transaction, including the provision of technical support services to the Argentine companies for a period of up to three years, the waiver and modification of certain rights deriving from the shareholders' agreement relating to Telecom Argentina, in favor of the Werthein Group, which will remain the holder of 32% of the ordinary shares of Sofora, as well as the purchaser's commitment to pay the profit already set aside for dividends from Telecom Argentina, in case of non-distribution before the closing.
As part of the agreements, a series of guarantees was obtained for the fulfillment of the buyer's contractual obligations, including the pledge granted by Fintech on a number of American Depositary Shares, representing preferred class B shares of Nortel, for a average market value initially of 100 million dollars.
Opening today in Piazza Affari, Telecom Italia shares are up 0,4%, going against the trend of the Ftse Mib (-0,55%).
