Poste notes Telecom control from Vivendi
- MILAN - Poste Italiane has formalized an offer to Vivendi to become a significant shareholder in Telecom Italia (TIM).
- The Italian postal service group has offered €0.2975 per share, totaling €658 million, to acquire 15% of TIM shares currently held by Vivendi.
- The move is reportedly part of a broader industrial strategy to establish a platform offering expanded services to both consumers and businesses, with potential revenue synergies for both...
Poste Italiane Makes Offer for Telecom Italia stake
MILAN – Poste Italiane has formalized an offer to Vivendi to become a significant shareholder in Telecom Italia (TIM).
The Italian postal service group has offered €0.2975 per share, totaling €658 million, to acquire 15% of TIM shares currently held by Vivendi. This would increase Poste Italiane’s stake to 24.81% of the capital,nearing the threshold that would trigger a mandatory takeover bid.
The move is reportedly part of a broader industrial strategy to establish a platform offering expanded services to both consumers and businesses, with potential revenue synergies for both entities.
Evaluations aimed at the start of industrial partnerships are underway aimed at enhancing the multiple opportunities for the creation of synergies between the two companies in the telephony sectors,ICT services and medium content,financial and insurance services and payments and finally energy.
In addition to an existing Mobile Virtual Network Operator (MVNO) agreement, discussions are reportedly in advanced stages regarding Postepay accessing TIM’s mobile network infrastructure.
Stock Exchange Impact
Rothschild advised Poste Italiane on the offer, while Evercore advised Vivendi. Previously,on Feb. 15, Poste Italiane acquired a 9.81% stake in TIM from CDP, in exchange for its participation by Nexi and a cash adjustment of approximately €170 million.
Sources indicate that Poste Italiane’s initial stake was purchased at an average price of €0.27 per share. This suggests the group secured a favorable price for a controlling stake in the telecommunications company,as the stock closed at €0.31 on the previous trading day.
Vivendi’s Position
Vivendi,which would see its stake reduced to 2.51%, reportedly aims to transfer control of Telecom Italia to an Italian group as an industrial partner, while remaining a minority shareholder to participate in the company’s revitalization.
Vivendi initially invested in TIM in 2014,acquiring 8% of the company as payment for the sale of its Brazilian GVT unit. Since then, the French company has attempted to influence the company’s management, both directly and indirectly, but has faced resistance from Italian authorities.
For the past two years, vivendi has devalued its stake in TIM to €0.21 per share (compared to an initial value of approximately €1.08), treating its share as a financial investment available for sale. Though,Vivendi believes TIM has significant potential with the right industrial strategy and management. Therefore,the company is reportedly considering remaining a minority shareholder and participating in governance at the next shareholder meeting on June 24.
Vivendi may nominate a board member, potentially even Vincent Bolloré, who resigned from the board in January 2023.
Poste Italiane’s Bid for Telecom Italia: A Q&A
What is Poste Italiane’s offer for Telecom Italia (TIM)?
Poste Italiane, Italy’s state-run postal service, has made an offer to acquire a 15% stake in Telecom Italia (TIM) from Vivendi. The offer is valued at €0.2975 per share, totaling approximately €658 million.
Key takeaway: This move aims to increase Poste Italiane’s ownership in TIM significantly.
What impact will this acquisition have on Poste Italiane’s stake in TIM?
If the deal is finalized, Poste italiane’s stake in TIM will increase to 24.81%. This figure is close to the threshold that would trigger a mandatory takeover bid, indicating a strong move towards potentially gaining control of TIM.
Further implication: This puts Poste Italiane closer to being a primary shareholder in TIM.
What is the strategy behind Poste Italiane’s investment in TIM?
The acquisition is part of a broader industrial strategy aimed at creating a platform offering expanded services for both consumers and businesses.The goal is to create potential revenue synergies by integrating services across multiple sectors.
strategic goals include:
Synergies in telephony.
ICT services.
Financial and insurance services.
Payments.
Energy.
Partnership Expansion: In addition to the existing Mobile Virtual Network Operator (MVNO) agreement, there are discussions on how Postepay can access TIM’s mobile network infrastructure.
What is vivendi’s position in this deal?
Vivendi, a French media conglomerate, aims to transfer control of Telecom Italia to an Italian group. They would remain a minority shareholder to participate in the company’s revitalization. Vivendi initially invested in TIM in 2014.
Vivendi’s stake: Their stake will be reduced to 2.51% if the deal goes through.
How does this acquisition affect the stock exchange perception?
Poste Italiane acquired an initial 9.81% stake in TIM from CDP on February 15. Analysts were optimistic about the price at which the initial stake was purchased, and Rothschild advised Poste Italiane on the offer, with Evercore advising Vivendi.
* Stock price comparison: The initial stake was purchased at an average price of €0.27 per share compared to the closing price of €0.31 on the previous trading day.
Key Aspects of the poste Italiane and Telecom Italia Deal
| Feature | Details |
| :———————– | :———————————————————————————————————————————————- |
| Poste Italiane’s Offer | €0.2975 per share, totaling €658 million for a 15% stake. |
| Poste italiane’s Stake After deal | 24.81% |
| Vivendi’s Stake | Reduced to 2.51% after the sale. |
| Strategic Intent | Expand services, develop synergies and establish expanded services for both consumers and businesses. |
| Advisors | Rothschild (Poste Italiane), Evercore (Vivendi)|