Tim e Telefonica, through their Brazilian subsidiaries Tim Partecipacoes e Telefonica Brazil (Live), have presented Bank of America Merrill Lynch with an expression of interest to acquire Oi's mobile phone, carioca operator in receivership. If the operation is successful, Tim and Telefonica will receive each “a part of the business”, reads the note from the Italian group.
“The expression of interest – continues the note – stems from the prospect that the operation, if materialized, will create value for the company and benefits for its customers and shareholders, accelerating growth and increasing operational efficiency and service quality. Furthermore, the possible conclusion of the transaction would have positive effects on the telecommunications market in general, strengthening its competitiveness and investment capacity”.
Tim's CEO, Luigi gubitosi, explained that the split with Telefonica could take place on a regional basis, following antitrust criteria. According to the manager, the operation "would create value from day one and would pay for itself", because a market of 230 million people "would go from four to three operators". Gubitosi added that the expression of interest “it could turn into a binding offer around December”, but “the times are not certain. Currently the deal is made if we all agree, let's see how it goes and see if the price is reasonable. We believe that from the point of view of the Brazilian market it makes sense. Oi is in a special situation, there is Chapter 11 and there are procedures to observe”.
Shortly before the Brazilian announcement, Tim had illustrated the 2019 financial statements - closed with a group net profit of 1,3 billion euros and net financial debt down to 23,8 billion - and the return to the dividend after 6 years (one euro cent for ordinary shares and 2,75 cents for savings shares). Furthermore, Tim announced that he has granted an exclusive period to the Kkr fund as a financial partner for the development of the fiber network in Italy.
