Telecom, fly actions saving for conversion – BBC

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Milan , Nov. 6, 2015 – 11:21

     
     
 

Check for weak Telecom Italy on the Milan Stock aftermath of shares ordinary and savings accounts were published for the first nine months. The securities have come to lose more than 3%, only to recover and mark a decline of 0.75% to 1.18 euro. Fly instead forward the savings shares: rise by 6.4% to 1.04 euro, in line with exchange ratios offered (currently slightly below: considering the exchange ratio expressing a theoretical price of the ordinary of 1.13). The group TLC continues to remain under the lens on the Milan Stock, after the board of directors, which lasted more than eight hours, he launched a surprise the extraordinary operation to convert savings into ordinary. Move that, according to reports, and ‘was given by the chairman, Giuseppe Recchi, and put in the corner, Marco Patuano.

The transaction will result in a dilution of the French partners and bring cash into the coffers of the company ‘. In fact to adhere to the conversion, which still must be approved by the assembly convened in mid-December, the savings shareholders will have to pay 9.5 cents. However, it is expected the mandatory conversion at the end of the period for the exercise of voluntary conversion, with a ratio of 0.87 ordinary shares for each savings, without the payment of any balance and no reduction of the share capital. In practice, if all the shares will be converted, Telecom Italy you will find a treasure of 572 million euro. Not only. Since the conversion will take place before the dividend payment date, Telecom according to forecasts of analysts will save about 160 million extra dividend payable to savings.

The move could also be defensive against any climbing since diluted by approximately 31% the position of shareholders. Numbers in hand, therefore, Vivendi, now at 20.3% stake, will slip to around 14%, while Xavier Niel, now at 10.1% if one considers its equity swap (otherwise has a position equal to 15, 1%) turns around 7%. E ‘, however, whether Vivendi and Niel also hold savings shares in their portfolios. Also to follow the moves of two shareholders in the coming weeks.

The company TLC has closed the first nine months with revenues declining by 6.9 % to 14.9 billion and EBITDA decreased by 14.8% to 5.6 billion. The profit for the period was 362 million against 985 in the same period of 2014. The accounts were in line with analysts’ expectations, which however have appreciated the progress in the improvement of the business in Italy. In fact in the third quarter of 2015, the decline in revenues in Italy and ‘was 1.4%, while in the second quarter was 1.6% and 2.6% in the first. In particular, revenues of Mobile in the third quarter with a return to positive growth compared to the same period last year by 1.5% (second quarter: -2.2%; first quarter: -2%).

6 November 2015 (modified November 6, 2015 | 11:56)

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