Italy's TIM says submarine unit sale progressing despite closing delay

MILAN, Oct 20 (Reuters) - A consortium led by Italy's Treasury remains committed to buying Telecom Italia TLIT.MI's submarine cable unit, the telecoms group said on Tuesday after a deadline to close the deal passed pending a required approval from U.S. regulators.

The consortium, which includes also Retelit - a fibre optic operator controlled by Spanish fund Asterion -, last year agreed to buy TIM's submarine cable business Sparkle in a deal valuing the unit at €700 million.

The closing of the deal, initially expected by the end of 2025, has been repeatedly delayed, with the latest extension setting an October 15 deadline for completion.

"The parties are continuing constructive discussions with the aim of bringing the transaction to a successful close and they agreed to reconvene to provide an update by November 20," TIM said in a statement.Italy deems Sparkle an asset of strategic importance for the country, given its 600,000 kilometres of cable network which transmits data across Europe, the Mediterranean and the Americas.The Sparkle sale was part of a broader asset-disposal programme by TIM, which has sold its fixed-line network to a consortium led by U.S. fund KKR KKR.N and including also Italy's Treasury for €19 billion to reduce its heavy debt burden.The former telecoms monopoly, which has struggled for years amid intense competition in its home market, is now back under state control following a takeover by Italy's postal service operator and financial services conglomerate Poste Italiane PST.MI.