TIM S.A. resolves disputes with C6 Group, monetizes shares

TIM S.A. (B3: TIMS3 and NYSE: TIMB), a leading telecommunications company with a market capitalization of $6.62 billion and a strong financial health score of "GREAT" according to InvestingPro, announced today the resolution of its disputes with Banco C6 S.A. ("C6"). The agreement also includes the monetization of TIM’s minority stake in the bank, which is expected to generate a gross revenue of approximately R$280 million for TIM.

The partnership between TIM and C6, which combined financial services with mobile telephony, has been beneficial for TIM in various ways, including customer loyalty and increased digitalization in transactions. The company has maintained strong operational performance, with revenue growing at 7.31% and an impressive free cash flow yield of 21%. The partnership will now come to an end, with TIM set to transfer all its shares and outstanding subscription bonuses to C6 for a sum of R$ 520 million before taxes.

This transaction is subject to approval by the Cayman Islands Monetary Authority (CIMA). Once approved, the agreement will be finalized, and the partnership between TIM and C6 will officially terminate. The specifics of the agreement remain confidential due to contractual clauses.

Despite the termination of this partnership, TIM remains committed to its Customer Platform strategy, aiming to continue building its ecosystem of digital services. The company, which currently offers an attractive dividend yield of 8.59% and trades at a P/E ratio of 11.94, has assured shareholders and the market that it will provide updates on future projects and commercial partnerships in accordance with applicable regulations. For detailed analysis and additional insights, including 12 more ProTips, visit InvestingPro.

This move is part of TIM’s ongoing efforts to optimize its business and create value for its stakeholders. The information disclosed is based on a press release statement from TIM S.A.

In other recent news, Brazilian telecommunications company TIM S.A. has announced two significant developments. Firstly, the company has scheduled its Annual Shareholders’ Meeting for March 27th, 2025, as per a recent filing with the Securities and Exchange Commission. Details regarding the meeting will be shared with shareholders once the call notice and related documentation are prepared and released.

Secondly, TIM S.A. has declared an interest on shareholders’ equity payment of R$ 650 million, approved by the company’s board for payment by January 23, 2025. The gross value per share stands at R$ 0.268528123, totaling the announced R$ 650 million, subject to change if the company sells treasury shares for its Long-Term Incentive Plan.

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