TIM Launches Follow-on

Brazilian wireless operator TIM has launched an equity follow-on that could reach BRL1.96bn ($1.15bn), it says. The telecom plans to sell 190.8m shares, indicating a BRL1.96bn deal at Thursday’s BRL8.95 close and assuming the exercise of a 15% greenshoe. Pricing is scheduled for October 4. Parent Telecom Italia has said it will exercise its rights to 66.94% of the sale, in a move that backs up its denial last month of rumors suggesting it was considering selling down its stake in TIM to raise funds to help with troubles in its home market. The wireless operator is looking for funds to expand its infrastructure, being low on cash following the July BRL1.6bn purchase of broadband provider AES Atimus. Itau and Morgan Stanley are managing the sale.