Telecom Italia will launch an offer to buy out minority investors in its TV broadcasting unit in a bid to simplify its structure and cut costs, it said on Thursday.
Telecom Italia owns 77 percent of Telecom Italia Media , and buying out the remaining stake will cost it around 25 million euros ($29 million). The unit's only asset is a stake in digital broadcasting firm Persidera.
Under the plan approved by the board of the two companies, Telecom Italia will offer 0.66 ordinary shares and 0.47 saving shares for each share of the same category in Telecom Italia Media, the companies said in a joint statement.
Telecom Italia Media had trading in its shares halted on Thursday pending the release of the statement.
After the buyout, Telecom Italia Media will be merged into Telecom Italia by the end of the third quarter. Investors in Telecom Italia Media can exercise a withdrawal right, opting to be paid off in cash at market prices.
Telecom Italia's board met on Thursday to approve its full-year results along with a three-year plan which is expected to focus on higher investments in its two key Italian and Brazilian markets. Telecom Italia will disclose the plan and the results on Friday.
On Jan. 21 Telecom Italia Media shares rose strongly after Telecom Italia did not rule out delisting the unit as part of its new plan. The possible delisting would follow the failure of plans to sell a stake in Persidera.
Source : http://www.reuters.com/