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Telecom Italia writes down value of submarine cable business Sparkle

Published 19/04/2024, 16:12
© Reuters. FILE PHOTO: The Tim logo is seen at its headquarters in Rome, Italy November 22, 2021. REUTERS/Yara Nardi//File Photo
TLIT
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MILAN (Reuters) - Telecom Italia (BIT:TLIT) (TIM) valued its submarine cable business Sparkle at 481 million euros ($521 million) as of Dec. 31, 2023, following an impairment of 107 million booked during the year, according to documents published on the telecoms group website.

WHY IT IS IMPORTANT Italy's Treasury is looking to secure control of Sparkle, seen as strategic for the country as its network extends over 600,000 km and transmits information between countries in Europe, the Mediterranean and the Americas.

© Reuters. FILE PHOTO: The Tim logo is seen at its headquarters in Rome, Italy November 22, 2021. REUTERS/Yara Nardi//File Photo

CONTEXT In February TIM rejected a Treasury bid for Sparkle. Sources said at the time TIM considered the Treasury offer, which valued the asset about 600 million euros plus some 150 million euros of variable components, as too low.

($1 = 0.9373 euros)

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