Telecom Italia confirmed it had received a binding offer from investment company KKR for its fixed network business, though a proposal for the operator’s stake in wholesale operation Sparkle is still being finalised.
The binding offer for spin-off NetCo follows months of speculation related to the sale of the operator’s fixed grid and subsequent shareholding in the asset, with KKR and Telecom Italia in exclusive negotiations since June.
KKR’s offer for NetCo expires on 8 November, though the operator flagged there was the possibility of an extension until 20 December.
For the Sparkle deal, the investment company has compiled a new non-binding offer with a firm bid expected within between four and eight weeks following further due diligence.
TIM noted it would bring the binding NetCo offer to its board after analysis but “without delay”.
Details of the offer were not disclosed, but Reuters claimed the bid valued NetCo and Sparkle combined at more than €23 billion.
Back in June, Telecom Italia shareholder Vivendi reportedly indicated its opposition to the move. At the time the FT claimed the stakeholder thought the assets on the block were worth closer to €30 billion, significantly higher than the figures being speculated.
Comments