2023-08-29 06:39:00
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 in fact approved a decree-law “ aimed at securing the financial resources allowing the State to take a share of up to 20% in the network, Economy Minister Giancarlo Giorgetti announced to the press.
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This involvement, 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 “, did he declare.
“Save Jobs”
As a reminder, a memorandum of understanding signed at the beginning of 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).
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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 goal is to take strategic control of the telecommunications network and save jobs “, assured in the Council of Ministers the Prime Minister, Giorgia Meloni, quoted by his entourage. ” Today’s decision is a first step “, she added.
A ” positive news »
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.
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 ” direct government involvement “Italian was a” positive news », and now waits « the opening of a serious dialogue » pour « reach concrete and achievable solutions ».
26.2 billion euros of debt
A joint offer between Rome and KKR should also involve other Italian investors such as the F2i infrastructure fund. CDP, which also holds a 60% stake in Open Fiber, TIM’s competitor, could also take a stake in the network, according to Giancarlo 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 could thus find a definitive solution in the months to come. », to souligné Giancarlo 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.
(With AFP)
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