Sole24Ore reports that Telecom Italia could potentially reduce its current 60% stake in Inwit to ca. 36% through the creation of a midco vehicle between them that would own the stake in Inwit and then open its capital to new investors. F2i is named as one of those potential investors.
TIT now consolidates INW with 60% stake. If TIT confers INW stake to "Midco" then immediately crystallizes +17% INW performance since IPO, which is worth approx. €265m. By applying a 27.5% tax rate TIT would get a €192m benefit at bottom line. On FY16 IMI est of Net Income of €1.4bn, this would mean a potential +13% increase on EPS.
After the conferment of INW stake to Midco, then according to Sole article TIT would then lower its stake in the Midco to 60% thus cash in ca. €300m
TIT now consolidates INW with 60% stake. If TIT confers INW stake to "Midco" then immediately crystallizes +17% INW performance since IPO, which is worth approx. €265m. By applying a 27.5% tax rate TIT would get a €192m benefit at bottom line. On FY16 IMI est of Net Income of €1.4bn, this would mean a potential +13% increase on EPS.
After the conferment of INW stake to Midco, then according to Sole article TIT would then lower its stake in the Midco to 60% thus cash in ca. €300m