Telecom Italia approves sale of submarine cable unit Sparkle

MILAN: Telecom Italia (TIM) said on Wednesday its board of directors approved a 700 million euro ($725.97 million) sale of its submarine cable unit Sparkle to a consortium led by Italy’s Treasury.

TIM, which is due to report its full year earnings and update its strategy later on Wednesday, said it expects to complete the Sparkle sale by the first quarter of next year.

Labriola told analysts in November any cash-in from a disposal of Sparkle could help TIM to resume dividend payments, which TIM suspended in 2022.

Sparkle is deemed of strategic importance by Italian authorities, given its 600,000 km cable network, which transmits information between European, Mediterranean and American countries.