(AOF) – Telecom Italia (TIM), whose majority shareholder is Vivendi, fell 5.21% to 0.21 euros. This stock market drop comes as the Italian communications company received a firm offer from the American investment company KKR for its fixed network business, including FiberCop. The amount is however not known. This offer will expire on November 8, but may be extended until December 20. KKR also made a new non-binding offer for Telecom Italia’s stake in its Sparkle cable unit.
The American company valued Telecom Italia’s fixed network – with Sparkle – at a maximum of 23 billion euros, including some earnouts, people familiar with the matter told Bloomberg.
The offer of 23 billion euros is not in line with the expectations of Vivendi, majority shareholder of TIM with 23.75% of the capital, which was betting on 31 billion euros.
The Italian State is the second largest shareholder of Telecom Italia through the 9.81% stake held by the Italian Caisse des Dépôts (CDP).
As soon as the analysis is finalized, the firm offer will be submitted without delay for examination by the board of directors of the Italian telecoms operator.
Let us also remember that TIM has a heavy net debt estimated at 26 billion euros.
© 2023 Agence Option Finance (AOF) – All reproduction rights reserved by AOF. AOF collects its data from the sources it considers the safest. However, the reader remains solely responsible for their interpretation and use of the information made available to them. The reader must therefore hold AOF and its contributors harmless from any claim resulting from this use. Agence Option Finance (AOF) is a brand of the Option Finance group
Did you like this article ? Share it with your friends using the buttons below.
