T-Mobile US and KKR have formed a joint venture to acquire Metronet, an Indiana-based ISP with over 2 million households served. T-Mobile’s $4.9 billion investment for a 50% equity stake aims to leverage Metronet’s fiber network, expanding T-Mobile’s broadband services.
Telecom Italia (TIM) celebrates the successful sale of its fixed-line grid to the Optics BidCo consortium, led by investment firm KKR. This strategic move aims to reduce TIM’s significant net financial debt and marks a first in major European telecom history.
Singtel and KKR are set to invest $1.3 billion for a minority stake in ST Telemedia Global Data Centres (STT GDC), marking the latest significant investment in the data center sector. The companies will initially acquire S$1.75 billion (US$1.3 billion) in redeemable preference shares and warrants, with a plan to invest an additional S$1.24 billion once the warrants are fully exercised.
Swisscom has revealed that its Italian subsidiary, FastWeb, has sold its 4.5% stake in FiberCop to Optics BidCo, a subsidiary of KKR, for €439 million. FiberCop, formed in 2021 by Telecom Italia (TIM), KKR, and FastWeb, manages the ‘last mile’ fibre network, connecting homes to street cabinets.
Europe’s telecom industry is alert as the European Union investigates competitive fairness amid KKR’s acquisition of Telecom Italia’s fixed-line network. Questions arise about the impact on market competition and the deal’s opposition by Vivendi, the largest stakeholder in Telecom Italia.
Diving into the complex dynamics of the telecom industry, Telecom Italia (TIM) pushes forward with the sale of its fixed-line network to US-based KKR, forecasting considerable debt reduction. Yet, Vivendi’s discontent raises questions about ownership rights, stirring an interesting conflict.
Golden opportunity or a hasty gamble? KKR’s pursuit to acquire Telecom Italia’s anticipated NetCo has been met with challenges from Vivendi, TIM’s largest shareholder. Confronting the complexity of separate asset sales and the valuation tug-of-war, it’s clear there’s more to this story than meets the eye.
KKR’s recent acquisition of a segment of Singtel’s data centre business, marking a staggering valuation of Singtel’s Digital InfraCo at S$5.5 billion, signals enduring private equity interest in telecommunications, regardless of economic turbulence. The move intends to boost Singtel’s regional expansion, piggybacking on the booming data centre industry and skyrocketing enterprise spending on cloud infrastructure services. This symbiotic partnership, leveraging Singtel’s expertise and KKR’s track record, promises to advance InfraCo’s growth in markets like Indonesia, Malaysia, Thailand, and Singapore.
TIM enters exclusive negotiations with KKR for its network assets sale, navigating regulatory hurdles and Vivendi’s opposition. Will the deal reach a successful conclusion?
The CDP/Macquarie consortium reportedly withdrew their bid for TIM’s NetCo, leaving KKR as the sole contender. The uncertain outcome hinges on satisfying major shareholder Vivendi’s valuation expectations and resolving potential antitrust concerns, with a complex road ahead.
