The operation FiberCo in Brazil livens up the quotes of Tim on the Stock Exchange: the share rises by 1,2% and is among the best in the Ftse Mib, while the investee Inwit falls despite results defined as solid by the investment houses.
The subsidiary Tim Brasil announced the start of exclusive negotiations with Ihs Brasil, a company of the telecommunications infrastructure group, for enter the newco FiberCo Solucoes de Infraestrutura which will collect the residential fiber optic infrastructure assets and services and which will operate in the wholesale market providing connectivity and transport network to third parties.
The operation – on which Tim Brasil had been working for a year and which had led to the collection of 4 formal offers – follows the model of Fiberco in Italy into which Tim's secondary network merged and whose capital was opened to Kkr and Fastweb.
According to Banca Akros analysts, who use FiBrazil as a reference (jv between Telefonica and Caisse de dépots et placement du Québec), it could have an enterprise value between 4,4 and 7 billion reais (between 650 million and 1 billion euro) and the sale of a minority stake could be used for investments in the roll-out of the fiber and to help finance the Oi operation in Brazil.
Opposite performance on the Stock Exchange for Inwit. The tower company, jointly controlled by Vodafone and Tim (30% shareholder through the joint venture with the Ardian Daphne funds) closed 2020 with revenues up 67,8% to 663,4 million e Net income up 12,5% to 156,7 million. The company benefits from the merger, which became operational in March 2020 with Vodafone Towers, which has made it possible to double the number of mobile telephony towers. The data is in line with the company's plans and the guidance communicated to the market, so much so that the company has confirmed the distribution of a dividend of 30 cents per share to its shareholders.
The share yields more than 2% but operators, according to what Radiocor reports, do not attribute the movement to fundamental reasons but rather to adjustments related to the current market scenario with rising rates. Since the beginning of the year, Credit Suisse points out, the stock has lost 16% precisely on the concern related to the trend in sovereign bond rates even if having a business with inflation-indexed contracts, the price prospects should give a benefit to profits.
During the presentation of the accounts to the analysts, the CEO Giovanni Ferigo indicated some strategic objectives: “We will reduce the debt by 2023 as said in November and it will be something we will discuss later. We monitor the opportunities on the market, otherwise we will increase shareholder remuneration."
