News from Tim. The company has sold its telecommunications network for 18.8 billion euros. After lengthy negotiations, Tim has 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: 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 was finalized, marking a turning point in the history of Italian telecommunications. And it also changes the employer for over 36 thousand employees.
The operation
Fibercop is the new Italian ‘wholesale only’ operator. “Tim will remain the reference Telco in Italy, remaining the most infrastructured operator and offering innovative services”, underlined the CEO Pietro Labriola at the closing of the sale of Netco, aware that the operation is unique in Europe but is not only a milestone, “it is also a new starting point”. The assets sold by Tim have been valued up to a maximum of 22 billion euros, including earn outs, and this allows the telephone group to reduce its financial debt by 13.8 billion euros.
What the new Tim will be like
The company has taken up residence in one of Tim’s properties in Milan, in the northern suburbs (‘NoLo’) where one of the group’s exchanges was previously located, while the operational headquarters will be in Rome in via Oriolo Romano, in the northern quadrant of the city. The shareholders met immediately after the closing to appoint, among other resolutions, the new board of directors. If there are no surprises, Massimo Sarmi will be confirmed as president; Luigi Ferraris, former CEO of FS, will be co-opted as CEO and Elisabetta Romano (who is leaving the board of directors) has been given the role of chief technology officer. Now the relationship between NetCo and Tim will remain regulated through a Master Service Agreement that has a duration of 15 years, renewable for a further 15, and “the services will be provided at market prices and without minimum purchase commitments”, Tim specifies. Tim’s total workforce drops from 37,065 to 17,281 people, equivalent to 16,135 full-time equivalents, while almost 20 thousand have moved to Fibercop. “We have achieved all the objectives we had announced and respected all the promised deadlines”, Labriola underlined. “We intend continue on this path to increase the trust of the
employees, customers and shareholders. We were the first in Europe to choose to separate infrastructure from services, to ensure better, more sustainable and faster development
possible”.
in-depth analysis
Tim, EU Commission says yes to NetCo acquisition by Kkr
Giorgetti’s comment
“It is the first piece of a puzzle for the solution of the historical problems of this country and a key step for the reorganization of the Italian telecommunications system”. This is the comment of the minister Giancarlo Giorgetti on the operation. “The government intervenes in a strategic sector, with a major industrial policy operation that, among other things, makes Tim and its workers safe”, he then added.
