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TIM values networks business at around EUR20bn, but Vivendi wants more

1 Jun 2022

Telecom Italia (TIM) has valued its fixed network business at around EUR20 billion (USD21.5 billion) including debt as it looks to push through a sale, Reuters reports. TIM is planning to split its retail and infrastructure operations, with the networks business to be merged with Italian wholesale provider Open Fiber.

Earlier this week TIM signed a Memorandum of Understanding (MoU) with Italy’s state lender Cassa Depositi e Prestiti (CDP), plus investment firms KKR and Macquarie Asset Management. CDP is majority owner of Open Fiber and has a 10% stake in TIM, while KKR is an investor in TIM’s FiberCop last-mile networks unit and Macquarie holds the remainder of Open Fiber. The parties hope to have reached an agreement by end-October.

According to a report from Il Messaggero, CDP will hold a 70%-77% stake in the merged networks business, while KKR and Macquarie will take around 12%-15% and 10%-13% respectively. Italian ISP Fastweb, a minority shareholder in FiberCop, will get 1%-1.5%.

The proposals have run into resistance, however, from TIM’s largest shareholder, Vivendi of France, which does not agree with the valuation. In an interview with La Repubblica, CEO Arnaud de Puyfontaine said: ‘Vivendi will never support the sale of the network at the estimated value mentioned.’

Italy, Kohlberg Kravis Roberts & Co (KKR), Macquarie Group, Open Fiber, Telecom Italia (TIM), Telecom Italia Group (TIM Group), Vivendi

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