Poste Italiane has agreed to acquire the majority of Vivendi's stake in Telecom Italia, positioning itself as the main investor in the company with a 24.8% holding. The company announced it will purchase a 15% stake in TIM from Vivendi, which recently reduced its holding to 18.4%.
Poste plans to fund the €684 million ($741 million) investment using available cash, acquiring shares in TIM at €0.2975 each. This price reflects a 4.8% discount compared to TIM's closing price of €0.3126 on Friday.
Poste will maintain its stake below the 25% threshold, which would require it to make a tender offer for the remainder of TIM under Italian law. It expressed intentions to act as a long-term shareholder following this strategic investment, aiming to explore potential benefits from collaboration between the two companies and support sector consolidation.
State-controlled Poste, which operates in energy, payments, telephone services, as well as mail and parcels, initially invested in TIM in February with a 9.8% stake, taking over from state lender CDP. TIM is recognized as Italy's former phone monopoly and is deemed strategically important for the nation.
After spinning off its fixed-line grid last year, TIM is positioned to participate in the sector consolidation anticipated due to thin profit margins that hinder necessary investments. To maintain a meaningful presence in TIM should a merger occur with another telecom firm, Poste needed to enhance its stake.
Poste was prepared to increase its holdings, and discussions with Vivendi were confirmed earlier this week, with indications that Poste is seen as having the right credentials to be a leading investor in TIM, functioning as both a financial and industrial partner.