Telecom Italia Sells TIM Peru To America Movil Unit

MILAN -(Dow Jones)- Telecom Italia SpA (TI) said late Wednesday it sold its mobile telephone business in Peru to a unit of America Movil SA de CV (AMX).

Telecom Italia said it had agreed on a price worth EUR407 million for TIM Peru.

Telecom Italia said it will receive EUR329 million while the buyer will take on EUR78 million in debt at the company.

Telecom Italia said it will post a capital gain of EUR110 million on the sale.

The former Italian monopoly said it will also reduce its net financial debt by more than EUR400 million as a result of the disposal.

Telecom Italia, which has a rapidly growing business in Brazil, said the sale fits in its strategy of concentrating on high-growth countries where there is potential to exploit the benefits of convergence between the fixed-line and mobile telecommunications platforms.

TIM Peru is Peru's No. 2 wireless operator with 1.5 million customers and a 31% market share. It had earnings before interest, taxes, depreciation and amortization of EUR30 million on EUR165 million in revenue last year, Telecom Italia said.

-By Christopher Emsden, Dow Jones Newswires; +39-02-58-21-99-05; chris.emsden@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 10th August 2005