TIM spin-off to the Ministry of Economy, conditions approved

The investment, with a maximum value of 2.2 billion euros, will be made if an agreement takes place between the financial giant KKR and the telecommunications operator

Italian political figures have signed off on the conditions and financial support needed for the country’s economy ministry to acquire a minority stake in Telecom Italia’s fixed spin-off, known as NetCo. The investment, with a maximum value of 2.2 billion euros, will be made if an agreement takes place between the financial giant KKR and the telecommunications operator for the sale of this asset. In an official statement, the Italian Cabinet announced that it had given the green light to a decree guaranteeing the availability of the financial resources necessary for the acquisition of the stake, also approving the structure and details of the proposed deal. Last month, a memorandum of understanding was signed between KKR and the Italian Ministry of Economy and Finance, in which the preconditions for the purchase of a stake, which could be up to 20%, of NetCo were outlined . The proposal that has been submitted for approval by the ministers envisages that the share to be acquired varies between 15% and 20%, with a maximum investment of 2.2 billion euros. Moments after the announcement, Reuters news agency reported that one of the draft decrees under discussion opens up the possibility that Italy could in the future acquire full ownership of Sparkle, Telecom Italia’s submarine and wholesale division. , which is destined to be part of the NetCo structure. The operator is currently in exclusive talks with KKR over a possible acquisition of NetCo. The goal is to receive a binding offer to acquire the unit by the end of September. It remains to be seen how these developments will evolve in the Italian telecommunications landscape, at a time when strategic interest and national security are at the center of the decisions taken by the government.



Source-www.adnkronos.com