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Italy’s Enel agrees €2.65bn sale price for its Open Fiber stake

Open Fiber Venice.jpg

Italian electricity company Enel has agreed that it will sell its stake in Open Fiber for €2.65 billion to Australian investor Macquarie.

The move is part of the process towards creating a single fibre broadband network for Italy, likely eventually to include TIM’s own fibre business Fiber Cop.

Enel has not yet determined whether it will sell all of its 50% stake in Open Fiber or just 40%, the company said. It will sell “a minimum 40% stake and up to 50%”, it explained.

If only 40% is sold, Macquarie will pay only €2.12 billion, said Enel.

Open Fiber is a wholesale, carrier-neutral fibre company that is building fibre-to-the-home (FTTH) infrastructure throughout Italy, including Venice (pictured). 

Enel is also looking for some extra earnings “from the possible implementation of the so-called ‘single broadband network’ between Open Fiber and TIM”, said the company, should a transfer of Macquarie’s stake result in an investment return rate of more than 12.5%.

If it does, Enel might get up to €500 million more, if it sells all its 50% stake, or €400 million if it decides to sell just 40%.

The process of just selling the stake in Open Fiber could take six months or more. Enel is asking for interest of €270 million to be added if the sale goes beyond 30 June 2021. And that’s before the prospective merger with Fiber Cop.

 

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