Telecom Italia to transfer its 10.36% stake in Oger Telecom to Saudi Oger for $477 million

06/29/2007 - 08:16 AM

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TELECOM ITALIA TO TRANSFER ITS 10.36% STAKE IN OGER TELECOM TO SAUDI OGER FOR $477 MILLION
 
This operation, foreseen in the industrial plan, will reduce the Telecom Italia Group’s net financial position by approximately €470 million

Telecom Italia signed the agreement for the transfer to Saudi Oger of its 10.36% stake in Oger Telecom, held through TIM International, for a total price of $477 million. The agreement also includes the removal of a Telecom Italia commitment for $150 million.

The operation, which should be completed by the end of July, will result in a reduction of approximately 470 million euro in the net financial position of Telecom Italia Group and will have a positive impact of 90 million euro on the profit and loss.

The decision to transfer the Oger Telecom shares, foreseen in the industrial plan announced in March, is part of the Telecom Italia Group’s strategic plan to rationalize its portfolio of shares in non-strategic international companies or on a purely financial basis.