Following the company´s 13 June announcement of an agreement for the sale of Italtel, Telecom Italia announces that the group of investors led by Clayton, Dubilier & Rice, Inc. and by Cisco Systems has today acquired 80.1% of the Telecom Italia Group company specialized in manufacturing and communication device system integration.
The value of the transaction stands at around €1 billion. As previously announced, CD&R is paying around €280 million for 50.1% of Italtel. Advent International and Brera Capital, the other two investors in the group led by CD&R, are acquiring around 11% of the company; Cisco and Telecom Italia each hold a stake equivalent to around 19%.
As a result of the transaction, the Telecom Italia Group is receiving around €800 million, leading to income at consolidated level during the 2000 financial year estimated at around €300 million.
Though not retaining an operative role in Italtel, Telecom Italia is maintaining its stake in order to benefit from the increase in value resulting from technological and management improvements brought about by the new equity holders.