The Telecom Italia Group and the Louis Dreyfus Communication Networks Group (LDCOM) have reached an agreement under which Telecom Italia is to dispose of its interest in the 9Telecom Group to LDCOM and, at the same time, acquire a 7% shareholding in the French Group.
This disposal reflects the objectives published in the Telecom Italia Group 2002-2004 business plan by focusing Group resources on high value creation businesses offering attractive prospects for growth.
Under the terms of this agreement, Telecom Italia is to pull out of 9Telecom operations. Over the last three years Telecom Italia’s stake in the firm has generated net losses of €1,182 million. The deal enables the Telecom Group to end the structural losses of its French subsidiary, and will allow 9Telecom to grow as part of a consolidated French market conglomerate.
The deal will result in a net charge on the Telecom Italia 2002 balance sheet equal to €282 million, roughly corresponding to 9Telecom’s forecast losses for the current year.
The agreement is subject to French Regulatory Authority approval.
LDCOM Networks is part of the Louis Dreyfus Group, a leading French holding company with international operations in telecommunications, energy, oil, maritime and agricultural commodities trading.
Rome, 21 June 2002