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Telecom Italia completes sale of NetCo to KKR for €22 billion

TIM has now confirmed the completion of the sale of NetCo to Kohlberg Kravis Roberts & Co. L.P. via the transfer to FiberCop (a 58% owned subsidiary of TIM) of TIM’s business unit comprising the fixed network infrastructure and wholesale activities, and the subsequent acquisition of the entire capital of FiberCop by Optics BidCo, a subsidiary of KKR.

The sale of NetCo, valued at up to €22.0 billion, including earn-outs linked to the fulfilment of certain conditions, allows TIM to reduce its net financial debt in line with its previous disclosure to the market. Furthermore, consistent with the disclosure included in the Addendum to the Capital Market Day published on 11th March 2024, adjustments and separation costs amounting to €0.4 billion are confirmed, translating into a reduction of net financial debt by €13.8 billion. The cash component corresponding to the PNRR advances relating to FiberCop, amounting to €0.4 billion, was deconsolidated as part of the transaction.

In addition, following the disposal, the future business relationships between NetCo and TIM are regulated through a 15-year term Master Service Agreement (MSA), renewable for a further 15 years. The services comprised in the MSA will be provided at market prices and without any minimum purchase commitments.

Following the transaction, TIM’s total headcount will decrease from 37,065 to 17,281, equal to 16,135 full-time equivalents. The Fast Mode

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