Italian Post Becomes the Largest Shareholder of TIM

Vivendi signed an agreement to sell 15% of its stake in Telecom Italia to Poste Italiane. The deal would make the state-owned postal company the operator’s largest shareholder.

Poste Italiane already holds a 9.8% stake in TIM, which it took from state lender CDP, and once its purchase from Vivendi is completed, it will hold 24.8% of ordinary shares and 17.8% of share capital. It will pay a total of €684 million for Vivendi’s 15% stake, which will be financed through cash.

The postal company, which operates Italy’s largest service infrastructure network, added it would remain under an ownership threshold of 25%. If it were to hit this, it would be required to make an offer to acquire the rest of Telecom Italia under Italian law.

The deal marks the end of Vivendi’s reign as the Italian operator’s largest shareholder. It has been looking at divesting its holdings in the company and just last week cut its stake from 23.8% to 18.4%. The French company first invested in Telecom Italia in 2015.

Poste Italiane said the deal represents a strategic investment for the company. It has decided to play the role of a long-term industrial shareholder and longer-term supporting the consolidation of the Italian telecoms market.