KKR makes a play for TIM's fixed line business

KKR makes a play for TIM's fixed line business

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TIM confirms that it has received a non-binding offer for a stake in its fixed-line network from US investment firm KKR.

Though details on the size of the stake or the amount KKR is offering remains unknown, TIM did confirm that should the deal go ahead it would result in the US firm taking control of the newly created company.

The assets would comprise the "infrastructural perimeter of the fixed network, including the assets and activities of FiberCop, as well as the stake in Sparkle, collectively referred to as 'Netco'.

The news expands KKR's existing relationship with TIM, with the investment company owning a 37.5% stake in the company last mile network, Fibercop for an equivalent value of €1.8 billion

Alongside co-investor Fastweb which subscribed FiberCop shares corresponding to 4.5% of the company’s capital by transferring the 20% held in FlashFiber, the former joint venture between TIM and Fastweb. FlashFiber is now incorporated into FiberCop.

According to Reuters, the industry ministry released a statement saying, "The government sees the safeguarding of employment levels and the security of a strategic infrastructure such as the national telecommunications network as key issues."

The Italian government will need to approve the deal before it can go ahead, as the country’s telecoms infrastructure is considered a national strategic asset, with some members of the Italian government in support of public ownership of TIM's fixed assets.

TIM's board of directors are set to meet today to discuss the the non-binding offer.

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