Telecom Italia sees fixed network revenues of almost 4 bln euros/yr-source
MILAN, June 7
MILAN, June 7 (Reuters) - Telecom Italia expects the fixed-line network assets it plans to spin off to generate annual sales of nearly 4 billion euros ($5.2 billion) with an EBITDA margin of about 50 percent, a source close to the matter told Reuters on Friday.
The board of Italy's biggest phone company approved on May 30 a plan to hive off fixed-line access network assets into a new company, a move that could help it raise cash.
The network company plans investments in fiber roll out of about 10 billion euros in ten years, the source said.
Telecom Italia is in talks to sell a minority stake, which could be around 30 percent, in the network company to state-backed fund Cassa Depositi e Prestiti (CDP).
The amount of Telecom Italia's debt that will be transferred into the network company is still under discussion, the source said. A possible benchmark could be a net debt of 3.5-4 times EBITDA.
Telecom Italia could not be immediately reached for comment. (Reporting By Danilo Masoni, editing by Lisa Jucca)
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