MILAN, Italy-Italian carrier Telecom Italia said it plans to sell its 54.76-percent equity stake in Entel S.A. to Almendral S.A., a holding company listed on the Santiago stock exchange in Chile and controlled by a consortium of entrepreneurs. Entel owns Entel PCS, a mobile carrier in Chile.
The price of the transaction is $934 million, which values Entel at about $1.7 billion. The disposal will reduce Telecom Italia Group’s net debt by some $1.4 billion and trigger a net charge of approximately $185 million.
Telecom Italia said the sale is consistent with its strategy of focusing on areas of strategic interest with potential for growth.
Closing of the transaction, subject to necessary approvals, is expected to occur within the next three months.
Entel also offers long-distance, international and data communications services. Entel PCS has 36-percent market share in Chile’s mobile telephony market, the Italian company said.
