Telecom Italia (TIM) could sell assets worth about €1 billion ($1.1 billion) to reduce its debt.

As reported by Bloomberg, the Italian telco may sell its remaining stake in tower operator Inwit, which is valued at around €300 million ($325m).

TIM is also hoping to sell its subsea unit Sparkle, which could bring in between €600 million to €800 million ($650-867m), according to people familiar with the situation, noted the publication.

The telco has been looking to sell its submarine cable unit Sparkle for some time.

The Italian Treasury submitted an undisclosed bid for Sparkle in early February, but was told by directors at TIM that it wants an offer of up to €750 million ($813m).

A deal for its stake in Inwit is not expected anytime soon, however, and could happen as late as in 2026.

Last week, Reuters reported that TIM chief executive Pietro Labriola warned investors the company could need to raise billions in capital if its planned €22 billion ($23.92bn) sale of its network to US investment firm KKR collapses.

The deal was approved by the Italian government last month.

TIM agreed to sell its landline grid network to KKR in November. The deal, which has been on the cards for some time, has been supported by Giorgia Meloni's Italian government since 2022, which plans to take a 20 percent stake.

TIM approved the deal without making it conditional on a vote by shareholders, with the board voting 11-3 in favor of the deal.

KKR valued the assets at €18.8bn ($20.5bn), but the overall value of the deal is as much as €22bn ($23.92bn) based on what can be earned if the grid is merged with that of small rival Open Fiber SpA. Debt-ridden TIM expects the sale to reduce its debt by €14bn ($15.25bn).

However, the deal still faces a legal challenge from TIM's top investor, Vivendi, which has previously called the deal "unlawful."