Metroweb shareholders and Telecom Italia far apart on sales negotiations
Shareholders of Metroweb and Telecom Italia (TI) are far apart on talks to sell Metroweb to TI, Italian-language daily Milano Finanza reported.
The unsourced report said that negotiations on the matter are likely to drag out over the issue of the valuation of Metroweb and Telecom Italia Sparkle, the TI subsidiary that owns undersea fibre-optic cables in the Mediterranean.
The report said that Metroweb's shareholders, CdP, the holding of the Italian Treasury, and Italian infrastructure fund F2i, value Metroweb at EUR 820m, or 15 times its EBITDA. The item said that TI is arguing that Sparkle's valuation should be at least equal to that of Metroweb's, given that Metroweb is in development while Sparkle's infrastructure is already in place.
The report noted that at present, TI is offering to swap a 25% stake in Sparkle forCdP's 46% stake in Metroweb. TI would then buy the 56% stake held by infrastructure fund F2i for EUR 530m.
The item added that TI is now looking at various other options including making an all-cash offer for Metroweb and listing Sparkle.
Milano Finanza daily edition