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. Last Updated: 07/27/2016

Italians to Sell Greek Telecom

MILAN -- Telecom Italia Mobile said Monday it had agreed to sell an 80.9 percent stake in Greek mobile phone operator TIM Hellas for 1.1 billion euros ($1.43 billion) to private equity firms Apax Partners and Texas Pacific Group.

TIM Hellas is Greece's third-largest mobile phone provider.

In a statement, TIM said it would make a capital gain of about 432 million euros from the deal.

The agreement gave TIM Hellas an enterprise value of about 1.6 billion euros and was equivalent to 16.43 euros per share.

In March, industry sources said Telecom Italia was in exclusive talks with Apax Partners and Texas Pacific Group about the sale of the TIM Hellas stake.

TIM is focusing its international efforts mostly on Latin America, and in particular in Brazil.

In February, Telecom Italia Chairman Marco Tronchetti Provera said the company had received offers for its stake in TIM Hellas.

Telecom Italia owns about 80 percent of TIM and is in the process of merging with the mobile company.

TIM Hellas had 2.3 million subscribers at the end of 2004 and reported a 2004 net profit of 78.8 million euros, down 14 percent from the previous year, as competitive and regulatory pressures tightened.