The company comprises TIM’s fixed-line network assets – including FiberCop and Sparkle – which are soon to be merged into a newly established company called NetCo.
The two offers were received earlier this month from a consortium led CDP Equity and Macquarie Infrastructure and Real Assets, on behalf of a group of investment funds managed or advised by the Macquarie Group. The second offer came from Kohlberg Kravis Roberts & Co (KKR).
According to TIM, after 'extensive and in-depth discussions' supported by financial advisors Goldman Sachs, Mediobanca - Banca di Credito Finanziario and Vitale & Co., TIM’s board of directors are favouring the offer from KKR, describing the deal as 'preferable in terms of executability and timing, and higher than the competing offer'.
As a result, TIM CEO Pietro Labriola has begun, on an exclusive basis, negotiations with KKR, with the period of exclusively to end by 30 September.
The transaction is still subject to legal authorisations, including those relating to the Golden Power process and Antitrust authorisations.
The Board also thanks the consortium formed by CDP Equity and Macquarie Infrastructure and Real Assets for their interest.
The news of TIM's plans to divest its fixed network assets was announced in July 2022. At the time, the company's board has given a mandate to Labriola to cede control of its network to cut its US$31 billion gross debt, while its revenue in Italy has been shrinking as a result of an uber-competitive market.
