Telecom Italia has delayed the deadline for the sale of its stake in Telecom Argentina until September 25th.
This is the second time in a month that the operator has pushed back the date, having previously extended the original deadline of August 12th to September 1st.
The Italian operator has agreed to sell the stake to the Fintech investment fund, owned by Mexican financier David Martinez, for $960 million. However, the transaction has not yet received full regulatory approval, and it is hoped that the delay will provide enough time for this.
However, it is possible that there are other causes behind the delay, including the fact that Fintech already owns cable assets in Argentina, which could create a conflict of interest.
The original terms of the deal, agreed last year, are still in place. Fintech will pay $860 million for TI’s 68% holding in Telecom Argentina’s controlling company, plus a direct minority holding in the operator itself. It will pay a further $100 million for service agreements.
The sale of TI’s holding in Telecom Argentina is part of the Italian firm’s efforts to lower its debts. The operator recently lost out to Telefonica in a bid for Brazilian fixed provider GVT.
