Tim has sold its telecommunications network for 18.8 billion euros. After decades of study and years of negotiations, the former monopolist has finally sold its infrastructure to the holding company formed by Kkr, Abu Dhabi Investment Authority, Canada Pension Plan Investment Board, the Ministry of Economy and F2i. The goal is to reduce the debt that has long held back its investment capacity. On the evening of July 1, in the Milan office of notary Carlo Marchetti, the operation destined to mark a turning point in the history of Italian telecommunications was finalized. And to also change the employer for over 36 thousand employees.
Who will lead Fibercop?
The deal in fact creates two new distinct companies from a single group. The governance of FiberCop, this will be the name of the new network company, is being defined. The current president Massimo Sarmi is moving towards reconfirmation while Luigi Ferraris, the current CEO of Ferrovie, who should end his mandate today with the appointment of the new FS board, has been identified for the post of CEO. However, work on the composition of the lists for the public company is still ongoing. The deadlines should be respected, even if sources close to the negotiations do not rule out that it may take a few more days. The new FiberCop members would however be ready to assign operational delegations to the president pro tempore.
The company’s numbers
FiberCop was born with approximately 4 billion in revenues, approximately 2 billion in operating margin and over 20 thousand employees. The network company will have debts of 6.5 billion, of which 5.5 transferred from Tim with the recent bond exchange. To these would be added 3-4 billion in bank debts held by FiberCop’s holding and functional to the purchase of the network.
The new Tim
As for the new Tim, CEO Pietro Labriola will find himself managing a company with approximately 16,700 employees, 14.5 billion in revenues expected in 2024, an operating margin of 3.75 billion, 70% of which is the result of activities in Brazil and of business services. Above all, the group will be able to reduce its debt, expected to amount to 7.5 billion at the end of the year without considering the proceeds from the possible sale of the Sparkle submarine cables to the government and 3% of the Inwit towers. Tim will thus be able to return to investing in services and, why not, in acquisitions. «In a scenario in which more and more investments are necessary, but at the same time operators continue to face unparalleled price pressure and stringent and unbalanced rules, we have chosen to chart the path of the evolution of the sector as protagonists», Labriola said.
