Market Watch

TIM Set to Complete Network Sale on July 1

LinkedIn Google+ Pinterest Tumblr

TIM, Italy’s primary telecommunications provider, has confirmed the completion date for the sale of its networks business. In a recent stock market filing, TIM announced that the deal with private equity firm KKR will close on July 1, as planned.

Since agreeing on the terms of the deal last November, TIM and KKR have been aiming for a summer completion. Initially targeting the third quarter, TIM revealed the transaction will be finalized at the very beginning of Q3, right on schedule. This timely conclusion is a significant achievement for TIM, given the numerous challenges encountered during the process.

The journey to this point began when TIM accepted a €22 billion bid from KKR less than eight months ago. The bid, which includes €18.8 billion plus potential earn-outs, followed extensive negotiations with KKR and state-owned lender Cassa Depositi e Prestiti (CDP). After agreeing to KKR’s offer, TIM faced further hurdles, including regulatory approvals and opposition from major shareholder Vivendi. Despite these challenges, TIM’s CEO Pietro Labriola retained his position after a shareholder vote in April.

Vivendi’s legal opposition to the deal, which alleges a breach of shareholder rights, is still in progress. However, a recent ruling by a Court of Milan judge limited the scope of the documents required for the case, focusing solely on minutes from TIM’s board meeting on November 5 that approved the sale. The final hearing is scheduled for November 5 this year.

Regulatory approvals have been smoother, with the Italian government giving the green light earlier this year, followed by EU approval last month. With regulatory hurdles cleared, the sale is set to proceed as planned.

The transaction involves the sale of NetCo, TIM’s fixed network infrastructure, and related assets to Optics BidCo, an investment vehicle led by KKR and including several investors like CPP Investments and the Italian government. Following this, Fastweb will sell its 4.5% stake in FiberCop to Optics BidCo for €438.7 million, expected to happen shortly after the TIM sale.

Write A Comment