“New Seat” sold to a Consortium formed by BC Partners

06/11/2003 - 00:00 PM

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“NEW SEAT” (DIRECTORIES) SOLD TO A CONSORTIUM FORMED BY BC PARTNERS, CVC CAPITAL PARTNERS, PERMIRA AND INVESTITORI ASSOCIATI FOR A TOTAL VALUE OF 5.65 BILLION EUROS

THE TRANSACTION WILL ALLOW TELECOM ITALIA TO REDUCE ITS NET FINANCIAL DEBT BY APPROXIMATELY 3.74 BILLION EUROS IN LINE  WITH THE PRE-ESTABLISHED OBJECTIVE

Today Telecom Italia and a consortium of investors formed by BC Partners, CVC Capital Partners, Investitori Associati and Permira have entered into a Sale and Purchase Agreement for the sale of approximately 61.5% of the share capital of "New SEAT"; New SEAT is the company that will inherit the Directories, Directories Assistance and Business Information operations following completion of the previously announced demerger of SEAT Pagine Gialle.

The agreed price is equal to 0.598 euro per "New SEAT" ordinary share, which equates to an enterprise value of approximately 5.65 billion euros.

The value of the stake sold by Telecom Italia is therefore equal to   3,032,923,166 euros. Including “New SEAT” s estimated net financial debt at closing of  708 million euros, the transaction will allow Telecom Italia to reduce its net financial debt by approximately  3.74 billion euros in line with the pre-established objective.

The completion of the sale will be subject to the demerger of SEAT Pagine Gialle becoming effective, the admission to listing of "New SEAT", that is expected to occur by the beginning of August, and the approval of competent anti-trust authorities.

Telecom Italia has been assisted by Citigroup and Lazard as financial advisors and Gianni Origoni Grippo as legal counsel.

The consortium of buyers has been assisted by Credit Suisse First Boston as financial advisor and by Giliberti Pappalettera Triscornia and Dickson Minto W.S. as legal counsel. The debt financing of the transaction has been organized by BNP Paribas, Barclays, Credit Suisse First Boston and Royal Bank of Scotland.