Business News Americas | January 31, 2011
Telecom Italia (NYSE: TI) has sold the 27% stake it held in Cuban state telco Etecsa to state-run firm Rafin for US$706mn, TI announced.
Rafin – a central bank-licensed entity that engages in financial activities such as leasing and import/export financing – has paid US$500mn up front and will pay off the remainder in 36 monthly installments. “Telecom Italia International’s receivable is guaranteed,” TI said.
The deal is the last in TI’s move to unload assets, rationalize its portfolio and lower debt, Italian and international press quoted Telecom Italia CEO Franco Bernabe as saying. The company will now focus on Brazil and Argentina, “with a strong expansion potential,” he reportedly said.
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