KKR offers EUR1.8bn for 38% of TIM’s last-mile business

30 Jul 2020

The US investment firm KKR has made an offer of EUR1.8 billion (USD2.1 billion) to acquire a 38% stake in Telecom Italia’s (TIM’s) last-mile networks business which has been dubbed FiberCop, Reuters reports, citing two unnamed sources. The government has said it would be keen to also take a stake in FiberCop via state lender Cassa Depositi e Prestiti (CDP), which already owns almost 10% of TIM and 50% of wholesale network provider Open Fiber. A deal for its last-mile networks with KKR could pave the way for a wider tie-up between TIM and Open Fiber to merge their respective national fibre infrastructure.

CorCom notes that Swiss owned Italian telco Fastweb could be entitled to a 4.4% stake in FiberCop thanks to its 20% interest in the FlashFiber venture it formed with TIM in 2016. It is thought that KKR could also be interested in acquiring a stake in Open Fiber, while investment funds Macquarie and Wren House have also expressed interest in shares currently held by utility group Enel.