Telecom Italia Approves Sale of Network Stake to KKR for EUR1.8 Billion -- Update
September 01 2020 - 5:51AM
Dow Jones News
--Telecom Italia's board of directors accepts KKR
Infrastructure's offer to acquire a stake in FiberCop
--Agreement with KKR and Fastweb represents first step toward
establishing national broadband network
--Preliminary deal with Italian lender CDP Equity for
integrating Fibercop in wider project approved
By Giulia Petroni
Telecom Italia SpA said late Monday that it has accepted U.S.
investment firm KKR Infrastructure's 1.8 billion euros ($2.15
billion) binding offer to acquire a minority stake in a new
co-investment project called FiberCop.
The Italian telecommunications company said the agreement, which
also involves Italian operator Fastweb, is the first step to
creating a national ultrafast broadband network.
The new entity, of which Telecom Italia will hold 58%, KKR
Infrastructure 37.5% and Fastweb 4.5%, "will offer passive access
services of the secondary copper and fibre networks to all
operators," it said.
Telecom Italia's secondary network, along with the fibre network
developed by FlashFiber--the joint venture between TIM and
Fastweb--will be transferred to FiberCop.
The operation is expected to close in the first quarter of 2021
and is subject to the authorization of competent authorities.
Telecom Italia also said the board of directors has approved a
preliminary deal with CDP Equity to integrate FiberCop in a wider
project to form a single national network company through the
merger of FiberCop and Open Fiber.
Under the terms of the agreement, Telecom Italia will own at
least 50.1% of the entity, while CDP Equity will guarantee its
independence and third-party status.
A due diligence process is expected by the end of the year,
according to the company. The aim is to reach a merger agreement,
which is subject to approvals, by the end of the first quarter of
2021 "at the latest."
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
September 01, 2020 05:36 ET (09:36 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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