Fintech in Acquisition of Majority Stake in Telecom Argentina
March 10, 2016
Cleary Gottlieb represented Fintech in a series of agreements with Telecom Italia and certain of its affiliates pursuant to which Fintech acquired all of the direct and indirect interest of Telecom Italia in Telecom Argentina. Fintech and Telecom Italia had previously entered into agreements with respect to the acquisition of Telecom Italia’s interests in Telecom Argentina.
The final closing, in which Fintech acquired an additional 51.0% of the shares of Sofora from Telecom Italia, occurred on March 8, 2016, after the transaction was approved by Argentina’s telecom regulator, Enacom. Fintech paid $550.6 million for the 51.0% stake. An initial closing, in which Fintech acquired 17.0% of the shares of Sofora, previously occurred on October 29, 2014.
Telecom Italia is one of Italy’s largest telecom operators and had been a participant in Telecom Argentina since its privatization in the 1990s. Telecom Argentina is one of the leading telecommunication companies in Argentina providing fixed and mobile telephony services and internet with more than 20 million customers and 15,000 employees. American Depositary Shares representing common shares of Telecom Argentina are listed on the New York Stock Exchange.