Telecom Italia subsidiary Telecom Italia International NV has executed an agreement for the disposal of its 54.76% equity stake in Chilean long haul, data and wireless operator Entel SA to Almendral SA, a holding company listed on the Santiago stock exchange in Chile, and controlled by a consortium of entrepreneurs led by the Hurtado Vicuña and Matte Groups. The price of the transaction is US$934mn which corresponds to a value of US$1,706mn for 100% of Entel SA.

The Italian incumbent says the disposal will reduce its group's net debt by around €1.1bn, and is consistent with Telecom Italia group's strategy of rationalising its international portfolio and focusing on areas of strategic interest with potential for growth. One such area is FMC. On 23 January the boards of Telecom Italia and the 56%-owned Telecom Italia Mobile (TIM) subsidiary approved a merger valued at €21bn. A statement from Telecom Italia noted: "Strategically and from a business point of view, the integration of TIM into Telecom Italia responds to the increasing integration of the platforms for fixed-line and mobile communications".
John Williamson