TIM agreed to sell its fixed network assets (NetCo) to Kohlberg Kravis Roberts & Co. (KKR), a U.S.-based investment group.
The binding offer values NetCo (excluding Sparkle) at an Enterprise Value of 18.8 billion euros, without considering any upsides associated to the potential transfer of part of the debt to NetCo and to earn-outs linked to the occurrence of certain conditions that may increase the value up to 22 billion euros. The deal includes the contribution by TIM of a business unit – consisting of primary network activities, wholesale activities and the entire equity investment in the subsidiary Telenergia – into FiberCop, a company that already manages activities relating to the secondary fiber and copper network.
TIM has now signed a transaction agreement with Optics BidCo (controlled by KKR and with Azure Vista, a wholly owned subsidiary of the Abu Dhabi Investment Authority. The parties expect the deal to be consumated in the summer of 2024.
