Tim: Kkr’s non-binding bid for Netco – Economy has been received

KKR made Tim a non-binding fixed-network offer, including Fibercop and a stake in Sparkle. The group conveys it on a note. The Board will meet today to begin the review process.

The Kkr Private Equity Fund’s non-binding offer, the note specifies, “indicates the shareholding to be selected, knowing that the purchase would result in a loss of vertical integration with respect to Tim.”

The government is following the offer closely Offered by the Kkr Fund “for a stake in Tim’s Netco,” a company that today plays a decisive role in telephone services, in the creation of broadband in our country and in the infrastructure of the national strategic pole, ”reads a note from Mimit.

The government considers “protecting employment levels and the security of strategic infrastructure such as the national grid central
Telecommunications. Based on these assumptions, we will evaluate developments regarding the first Italian telephone company. ” After entering the stock market with a bang, Tim’s share continues its march.

Model Network in Europe
Kkr aims to acquire a stake in Netco, the new company that will emerge from the network’s spin-off from Tim. We are talking about the entire fixed network, primary, secondary, domestic and international (Sparkle) wholesale activities.

Netco, which emerged on the day of the capital market, may represent the first case in Europe to create a fiber network infrastructure and a technology pole that is fully marketable and with a widespread presence throughout the national territory. It will focus on the wholesale market with a mission to further accelerate fiber network deployment, benefiting in the medium-long term from the investment cycles and relative returns typical of the infrastructure market.

As of September 30, NetCo managed 16 million fixed accesses (more than 71% of them in FTTx technologies) with a market share of 82% and FTTx coverage of more than 94% of active lines (more than 57% at speeds over 100 Mbps) . The number of technical units accessed with FTTH technology reached 7.2 million, which corresponds to a coverage of about 29%, an increase of 4 percentage points compared to the end of 2021. In the 9 months of 2022, the latest available data while waiting for Tim’s board was on February 14 Approving last year’s financials, NetCo reported total revenue and services declined 4.8% and 3.8% year-over-year, respectively, with an improvement in the third quarter (-2.6% and -2.7%, respectively). The decline was mainly due to one-time transactions in the first half of last year, which had an impact of about 3.2 percentage points on the decline in total revenue and 1.7 percentage points on revenue from services.