2023-08-28 19:08:00
If the operation is successful, the Italian state will make a comeback in a group considered strategic (AFP / Miguel MEDINA)
The Italian government on Monday gave the green light to the entry of the State into the capital of the fixed network of Telecom Italia (TIM), with a view to a joint purchase offer with the American investment fund KKR.
The Council of Ministers has approved a decree-law “aiming to guarantee financial resources” allowing the State to take a stake of up to 20% in the network, Economy Minister Giancarlo Giorgetti announced to the press. .
This participation, “of a maximum amount of 2.2 billion euros”, will allow “the exercise of special powers and the ability to have an impact, in terms of security strategy, on what we consider to be a decisive infrastructure for the future of the country,” he said.
A memorandum of understanding signed in early August with KKR provides that the Italian state will take a “minority stake” in the future TIM company bringing together its fixed network and its submarine cable subsidiary.
The State is already a shareholder in Telecom Italia through the 9.81% share held by the Italian Caisse des dépôts (CDP).
If the operation is successful, he will mark his comeback in a group considered strategic, which had been privatized in 1997 by the government of Romano Prodi.
The government’s objective is to “take strategic control of the telecommunications network and save jobs”, assured the Council of Ministers Prime Minister Giorgia Meloni, quoted by those around him. “Today’s decision is a first step,” she added.
After months of suspense, TIM had opted at the end of June for the KKR fund’s offer for the takeover of its network, and entered into exclusive negotiations with it.
KKR’s proposal, which under certain conditions reaches 23 billion euros, was deemed more advantageous than the competing offer from CDP, which was around 19.3 billion euros.
– “Final solution” –
KKR’s offer, however, remained well below the expectations of French media giant Vivendi, the largest shareholder of Telecom Italia with a 23.75% share, which had estimated the value of the network at 31 billion euros.
Vivendi nevertheless judged that “the direct commitment of the Italian” government was “positive news”, and is now waiting for “the opening of a serious dialogue” to “reach concrete and achievable solutions”.
A joint offer between Rome and KKR should also involve other Italian investors such as the F2i infrastructure fund.
CDP, which also owns a 60% stake in TIM’s competitor Open Fiber, might also take a stake in the network, according to Giorgetti.
In total, the participation of Italian investors should oscillate between 30 and 35%, leaving the majority to KKR.
“We hope to be able to give a definitive and stable framework to a story that has been at an impasse for a long time and which might thus find a definitive solution in the months to come”, underlined Mr. Giorgetti.
The sale of its network should allow Telecom Italia to reduce its enormous debt, which amounts to 26.2 billion euros.
The deadline for filing a binding offer to take over the network has been set by Telecom Italia at 30 September.
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