TIM S.A. (BOVESPA:TIMS3) is in talks to buy back a 51% stake in a fibre-network business it previously controlled, according to two people with knowledge of the matter. The information was reported by Reuters. The stake in the unit, called I-Systems, could be worth around $170 million.
TIM SA sold the stake, which was then in a company called FiberCo (FiberCo Soluções de Infraestrutura Ltda.), to independent communications infrastructure company IHS Towers in 2021. A purchase would give TIM Brasil (TIM Brasil Serviços e Participações S.A.) full operational control of the business. The two people, who declined to be named because the talks are not public, cautioned that negotiations may take longer than currently envisioned.
Telecom Italia, which owns a 67% stake in TIM SA, last month mandated the Brazilian operator to move ahead with the negotiations and named Rothschild as an adviser on the deal. TIM SA could approve a potential transaction as early as February 10, when its board meets over full-year results. Spokespeople for TIM SA, Telecom Italia and Rothschild declined to comment.
IHS Towers was not immediately available for comment.
