TIM Group: TIM considering selling stake in Noovle data center unit

According to Reuters, Italian telco TIM is mulling over reorganization and selling off its stake in Noovle Cloud and data center unit. The potential decision is based on the company’s financial struggles. TIM has been struggling with shrinking margins and revenue, price competition, and costs of upgrading its network. The company was on a call with analysts, and it revealed that the board had discussed a potential reorganization of its business.

CEO of TIM, Luigi Gubitosi, said the company could sell its minority state in Noovle in the second half of next year. Gubitosi noted that the company’s upcoming business plan would be stringent on cost. TIM has a debt pile of €29 billion ($33.6bn). Luigi Gubitosi added that the company is committed to extracting the correct value from its portfolio. The largest shareholder in TIM, Vivendi, a French media firm, has also asked for a board meeting this month to discuss turning around the business and reorganizing the company.