TIM S.A. concludes partnership with C6 Bank

TIM S.A. (B3: TIMS3 and NYSE: TIMB), a leading telecommunications company with a market capitalization of $7.28 billion and a perfect Piotroski Score of 9 according to InvestingPro, announced today that its partnership with C6 Bank has officially come to an end. The termination follows the approval by the Cayman Islands Monetary Authority (CIMA) of the transfer of all shares and outstanding subscription warrants held by TIM in Carbon Holding Financeira S.A., a stakeholder in Banco C6 S.A. ("C6"), to an entity within the C6 Group. The company maintains strong financial health with a 6.77% revenue growth and an attractive 4.53% dividend yield.

The original agreement, which set the terms for the partnership’s conclusion, was signed on February 11, 2025. With the completion of the share transfer, all ongoing disputes between TIM and C6 have been resolved, including the conclusion of four arbitration proceedings.

TIM has assured its customers that they will be kept up to date on any benefits they were receiving under the partnership through the company’s official communication channels.

The closure of this partnership marks a significant change in TIM’s business strategy, although the company has not disclosed further details on the implications of this development for its operations or future plans. With its strong free cash flow yield and "GREAT" financial health score from InvestingPro, TIM appears well-positioned to navigate this strategic shift. Unlock 8 additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

The information provided in this article is based on a statement from the SEC filing by the company.

In other recent news, TIM S.A. has launched a new share buyback program, aiming to acquire up to 67,210,173 common shares, which is about 2.78% of its total shares. This initiative, called Program 8, is designed to optimize capital allocation and enhance shareholder value and will be active until August 13, 2026. Concurrently, TIM S.A. has resolved its disputes with Banco C6 S.A. and plans to monetize its minority stake in the bank, expecting to generate gross revenue of approximately R$280 million. The transaction, pending approval by the Cayman Islands Monetary Authority, will involve TIM transferring its shares and outstanding subscription bonuses to C6 for R$520 million before taxes. Additionally, TIM S.A. has scheduled its Annual Shareholders’ Meeting for March 27, 2025, as per a recent filing with the SEC. Details regarding the meeting will be shared once the necessary documentation is prepared. These developments reflect TIM S.A.’s strategic efforts to manage its financial resources and communicate transparently with shareholders.

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