Tim He continues his race in Bagdriven by expectations on financial results and speculations on a possible consolidation of the telecommunications sector in Italy.
Tim closed on the stock exchange by scoring a vigorous rise of 6.28%, regaining 0.3 euros. The attention of investors is maximum. And there is turmoil while waiting for February 12, when the Board of Directors approves the Budget 2024but above all for February 13, when the CEO Pietro Labriola will present the strategic plan for the three years 2025-2027.
CVC, Iliad and the maneuvers on Vivendi
But in addition to the numbers, the title is also moved by rumors about the Risiko in telecommunications. The private equity fund CVC it would be in negotiation with Vivendi To detect the share of 23.75% that the French group holds in TIM. CVC Capital Partners, which is based in Luxembourg, is among the largest companies in the world in the sector. However, the operation would have been raised regarding the price: Vivendi asks for a prize compared to the stock exchange values (around 0.41 euros per share, about 1.5 billion euros), while CVC shows a warm attitude regarding the request.
And parallel, Iliad He makes his move: the French group entrusted Lazard and Mediobanca the role of Advisor and met the Minister of Economy Giancarlo Giorgetti and the head of Cabinet of Palazzo Chigi Gaetano Caputi to illustrate his project.
The goal would be to acquire one share relevant of TIM for melt it with Iliad Italia, ensuring the protection of employment and avoiding the stew of activities.
The position of the government
The position of the government is articulated. If on the one hand the MEF does not seem particularly in favor of Iliad’s entry into TIM’s capital, on the other it does not hinder the hypothesis of CVC as a possible substitute for Vivendi. However, the negotiations between the fund and the French group remain stalled, which maintains different scenarios open for the future share structure of TIM.
The role of Poste Italiane
In the meantime, new hypotheses of industrial collaboration emerge. Tim would be evaluating the possibility of new commercial agreements with Mobile Postewhose contract with Vodafone It is expiring. A partnership with Poste Italiane, controlled by the MEF and the CDP, could generate important synergies with Tim Enterprise, the division of the TLC group focused on services for companies and public administration.
TIM’s industrial plan
In addition to the possible corporate operations, attention is focused on the new 2025-2027 industrial plan that Pietro Labriola will present to the market. The focus will be on the cash generation, a key element for the group’s financial sustainability. In this context, two crucial operations are expected:
- The sale of Sparkle, the subsidiary who manages the submarine cables, for an estimated value of 700 million euros;
- The outcome of the cause on the fee with the MEF, which could bring about 1 billion euros to the TIM coffers.
On the financial front, analysts estimate for 2024:
- growth revenues of 2.9% to 14.46 billion euros;
- Ebitda increases by 8.4% to 4.34 billion euros;
- debt reduction to 7.35 billion euros.
The wait for the new strategic plan and for any evolutions on the consolidation front will maintain the volatility of the title in the coming weeks.
