TIM Finalized €700 Million Sparkle Sale

Telecom Italia approved the sale of wholesale unit Sparkle to Boost BidCo, a corporate vehicle controlled by the Italian Ministry of Economy and Finance. The deal involves digital services company Retelit, which values the division at €700 million.

The Italian incumbent expects to close the deal in Q4, stating there could yet be a price adjustment based on earnings targets set for Sparkle. Telecom Italia explained the sale is progressing after a related parties committee concurred with an earlier board backing for the move.

The operator said the sale price would be equal to the enterprise value, adjusted based on Sparkle’s net debt and working capital at closing. The company emphasized customary closing conditions including antitrust and Golden Power clearances must still be obtained.

Telecom Italia added sale terms would likely also involve an agreement between it and Sparkle covering mutual services. The operator’s board accepted the binding offer in February after Telecom Italia granted several extensions to the acquirers to finalize their bid.