TIM OKs grid stake sale to KKR, endorses government plan for ultrafast network

  • 📰 Reuters
  • ⏱ Reading Time:
  • 33 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 97%

Finance Finance Headlines News

Finance Finance Latest News,Finance Finance Headlines

Telecom Italia (TIM) said on Monday its board had approved a sale of a minority stake in its last-mile grid to U.S. investment firm KKR while endorsing a government plan to create a single ultrafast network with rival Open Fiber.

TIM, which is transferring its secondary grid running from street cabinets to households into a separated company called FiberCop, will sell a 37.5% stake in the unit to KKR, while Swisscom’s Fastweb will own a 4.5% stake.

“Tim’s board agreed a letter of intent aimed at folding FiberCop in a wider project to create a single national network operator”, TIM said in a statement after a board meeting, adding the board had mandated Chief Executive Luigi Gubitosi to sign the deal. Under a plan promoted by the government, and subject to prior regulatory approval, FiberCop will merge with state-backed Open Fiber to create a single network operator.

TIM said it would own at least 50.1% of the new entity but added the independence and third-party status of the company would be guaranteed by a shared governance mechanism with state-lender Cassa Depositi e Prestiti.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines