Telecom Italia (TIM) has extended the deadline to finalize the sale of its subsea cable unit, Sparkle, to March 15.
The sale, which involves a consortium comprising Italy’s Treasury and Spanish investment fund, Asterion, is valued at EUR 700 million (USD 729 million). The extension provides more time to resolve outstanding financial and procedural steps required to close the deal.
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The Treasury and Asterion submitted their binding offer for Sparkle in mid-December last year, indicating a major step in TIM’s broader restructuring efforts. The company’s board was initially expected to approve the offer by January 27. However, negotiations were delayed due to the consortium’s reliance on a EUR 600 million financing package from a group of banks, which is yet to be finalized.
In a statement issued on Wednesday, TIM confirmed the new timeline and noted the “positive evolution of negotiations” between the parties. The exclusivity period for the bid, originally scheduled to end in February, has also been extended to align with the March 15 deadline.
Sparkle’s Global Role
TIM’s subsea cable division, Sparkle, is a cornerstone of Europe’s telecommunications infrastructure. The company operates a vast undersea cable network, providing international data transmission and global connectivity. These cables support internet traffic, cloud services, and global communications.
The sale is part of TIM’s strategy to reduce debt and streamline operations while ensuring that Sparkle’s infrastructure remains in capable hands. For Italy, Sparkle represents not just a business asset but also a strategic asset, underpinning its position in global data traffic and communications.
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The successful sale of Sparkle could mark a critical step forward for TIM, helping to stabilize its financial position while allowing Italy to maintain a strategic stake in its digital infrastructure.
Industry watchers are closely following the progress as Sparkle manages a large network of subsea cables spanning over 600,000 kilometers, reaching multiple continents. TIM’s decision to proceed with the sale could significantly affect the company and Italy’s role in the global telecommunications landscape.
