June 5, 2019 / 8:06 AM / 12 days ago

Telecom Italia trims debt burden with Persidera sale

MILAN, June 5 (Reuters) - Telecom Italia (TIM) has sold its majority-owned broadcasting unit, Persidera, in a 240 million euros ($270 million) deal, fulfilling a part of the heavily indebted phone company’s latest turnaround plan.

TIM and its co-investor in Persidera are selling the business, which specialises in broadcast infrastructure and services, to two Italian firms, infrastructure fund F2i and a broadcast communications firm EI Towers.

TIM owns 70 percent of Persidera and Italian publishing firm GEDI Gruppo Editoriale the rest.

The phone company said in a statement on Wednesday that the deal gave Persidera an enterprise value of 240 million euros and would reduce TIM’s net debt position by about 160 million euros.

TIM net debt at end-March stood at 25.1 billion euros.

TIM shares were up 1.6 percent after the news. GEDI shares jumped more than 3 percent.

GEDI received 74.5 million euros from the sale, though it booked a loss on the transaction of 17 million euros.

$1 = 0.8880 euros Reporting by Mark Bendeich Editing by Cristina Carlevaro

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