Right to request the demerger of Telco exercised

Price sensitive

Exit from Telco investment continues, within planned timeframe

Right to request demerger exercised; 1.6% stake in TI directly allocated

Further benefits expected, in terms of profits from subsequent sale

Mediobanca hereby gives notice that of today, the first date available in the time window provided for contractually, it has exercised its right to request the demerger of Telco permitted under the terms of the shareholders’ agreement, execution of which remains conditional upon obtaining the requisite clearances from the relevant authorities.

This exercise is the natural next step in the process of exiting the Bank’s investment in Telecom Italia, announced in June last year when the guidelines of Mediobanca’s 2014/16 strategic plan were unveiled, and launched on 24 September with the reduction in the Telco stake from 11.6% to 7.3% (i.e. from 2.6% to 1.6% of the ordinary share capital of Telecom Italia on a look-through basis). Since September 2013 the Telecom Italia share price has risen 65%, compared with 13% for the European TLC sector and 23% by the Mibtel index. The transaction is part of the wider process of reducing the Bank’s equity exposure, which is an integral part of the guidelines of the 2014/16 strategic plan.

Based on current Telecom Italia stock market prices, the unrealized gain due on the investment amounts to approx. €110m, in addition to the €67m gain booked in the first half of the current financial year.


Milan, 16 June 2014