TIM: Capital reduction and savings share conversion become effective

(Alliance News) - Telecom Italia Spa announced on Thursday that the conditions precedent regarding its share capital reduction and the conversion – both voluntary and mandatory – of savings shares into ordinary shares, approved by the shareholders' meeting on January 28, have been met.

The company stated that, following the expiry of the statutory period without any creditor opposition, the reduction of the share capital has become effective. The capital now stands at EUR6 billion, down from the previous level of approximately EUR11.68 billion.

The transaction does not involve any change in the number of shares outstanding but entails a reduction in the implicit par value. Part of the resources resulting from the reduction has been allocated to the legal reserve, while the remainder will flow into a distributable reserve.

With the completion of this condition, the requirements for the effectiveness of the savings share conversion have also been satisfied.

TIM confirmed that the settlement of savings shares for which withdrawal rights were exercised will take place on May 5.

The shares subject to withdrawal, totaling just over 2 million units, will be fully purchased by other shareholders following the rights and pre-emption offer already concluded.

The conversion of savings shares will be carried out in two phases: voluntary conversion, where savings shareholders can participate from May 6 to May 19. The conversion ratio is one ordinary share for each savings share, with a cash payment of EUR0.12 per share; and mandatory conversion, where shares not voluntarily converted will be automatically converted on May 21, at the same ratio but with a lower cash payment of EUR0.04 per share.

The voluntary conversion will be executed on May 20, while the mandatory conversion will take place the following day.

As of May 21, 2026, TIM's savings shares will be delisted from Borsa Italiana. The new ordinary shares resulting from the conversion will continue to be traded on the same market.

Upon completion of the transaction, over 6 billion new ordinary shares will be issued, corresponding to the total amount of savings shares currently outstanding. The share capital will then be divided into approximately 21.36 billion ordinary shares.

TIM shares closed Thursday up 0.3% at EUR0.67 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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