The Telco shareholders, the holding company that controls 22,4% of Telecom Italia, have decided to renew the agreement ahead of its expiry date. The renewal will be valid for three years expiring on February 28, 2015 under the current terms and conditions. Among these there is also the right to request cancellation of the agreement and the related demerger, by means of a communication to be sent between 1 and 28 August 2014, and the right to early cancellation and related request for demerger, to be communicated between 1 and 28 September 2013, with execution within the following 6 months.
Then there is the debt chapter, due by the end of October there are 3,4 billion in debt. In this regard, the shareholders of the holding (Telefonica, Generali, Intesa Sanpaolo and Mediobanca) have undertaken to refinance the entire maturing debt on a pro-rata basis. Which could involve access to external financing.
“The commitment of the shareholders – reads the note – does not exclude access for Telco to alternative sources of financing on the credit market, it being understood that in this case said commitment will be considered reduced accordingly. To this end, Telco has resolved to initiate contacts with the banking system to define the terms and conditions for a refinancing package".
