The NetCo sale transaction is valued at up to 22 billion euros
Telecom Italia TIM announced that he has NetCo sale to Kohlberg Kravis Roberts completed.
The operation will be implemented through the transfer to FiberCop (a company 58% controlled by Telecom Italia TIM) of the business unit of the telephone company that includes the fixed network infrastructure and wholesale activities, and the subsequent acquisition of the entire capital of FiberCop by Optics BidCo, a company controlled by KKR.
The NetCo sale transaction is valued at up to 22 billion euros (including earn-outs linked to the occurrence of certain conditions) and allows Telecom Italia TIM to reduce its financial debt.
In particular, the deleverage expected at closing, gross of the usual adjustments for this type of transaction, is confirmed at 14.2 billion euros.
Furthermore, the adjustments and separation costs totalling 0.4 billion euros are confirmed, in line with what was indicated to the market in the Addendum to the Capital Market Day on 11 March, determining an effective net amount of 13.8 billion euros. Telecom Italia TIM added that the cash component corresponding to the PNRR advances relating to FiberCop, equal to 0.4 billion euros, was deconsolidated in the context of the transaction.
Finally, the company specified that, following the sale, the relationship between NetCo and Telecom Italia TIM is regulated through a Master Service Agreement (MSA) which has a duration of 15 yearsrenewable for a further 15 years, and the services will be provided at market prices and without minimum purchase commitments.
