Telefonica raises stake in Telecom Italia's Telco to 66%
Option to 100% in 2014, TI shares surge on stock market24 September, 10:53
Telefonica SA is paying 1.09 euros for the Telco shares in a 324-million-euro capital increase following an overnight deal and its stake is set to rise to 70% with a further capital increase of 117 million euros following approval by antitrust authorities in Brazil and Argentina. It has an option to raise this amount to 100% in January 2014. However, for the moment, Telefonica only has 46.2% of the voting rights, while Generali has a 19.32% stake with 30.6% of voting rights, and Intesa and Mediobanca have 7.34% each, with 11.6% voting rights.
Subsequent to authorisation by the Brazilian and Argentinean antitrust authorities, it will underwrite another capital increase of Telco worth 117 million euros, also without voting rights, which will later be convertible into ordinary shares with voting rights of up to 70% of Telco. According to the terms of the agreement, Telefonica will then be able to acquire 100% of Telco as of January 1, 2014, a Telefonica press release said. Beginning January 1, the Spanish company will be able to convert the shares acquired through the capital increase into voting rights in Telco, bringing them to 64.9%. The agreement foresees that when 50% has been converted, Telco's Board of Directors will have 10 members, five of whom appointed by Italian partners and five by Telefonica, with the current assembly quorums unchanged. (ANSAmed).