Italian telecommunications company TIM says it is reviewing non-binding “interest indicators” from US investment fund KKR.
ROME – Italian telecommunications company TIM is reviewing a non-binding “interest signal” from US investment fund KKR to acquire the entire capital share, a potential 11 11 billion deal.
Any agreement would require an OK from the Italian government.
In a statement issued Sunday evening, TIM said its board of directors had met and “acknowledged” the fund’s interest in launching a possible public tender. The process of proper efficiency is expected to take four weeks.
A statement from TIM stated that the board had appointed Kohlberg Kravis Roberts & Co. LP’s “acknowledgment of intent”, which to this day is “non-binding and eligible as an indication.”
TIM described KKR’s gesture of interest as “friendly” and aimed to gain the approval of TIM’s directors and the support of TIM’s management.
The government is expected to take a closer look at KKR’s interest, especially with regard to any dismissal from TIM, a major Italian company.
The KKR’s move comes as Prime Minister Mario Draghi’s government has pledged billions of euros in EU epidemiological rehabilitation funds to facilitate the country’s digital transition.
TIM said the interest indicator predicts the price of an indicator, which will be paid in full in cash, 0.505 euros per share or savings. Italian media have estimated that the offer will be worth 11 billion euros (over بل 12 billion).
KKR already has links to TIM, since it became part of FiberCop a year ago.
FiberCop, formed by TIM, KKR and Fastweb, is developing digital services through high-performance fiber optic connections.
French company Vivendi is TIM’s largest sole shareholder with 23.75% stake. It was not immediately clear how Vivendi could respond to the US fund’s intentions.
TIM, formerly known as Telecom Italia, was born in the mid-1990s. Over the years, industrial companies, including Olivier and Beniton, have begun offering economic inclusion offerings. In 2016, he changed his name to TIM, the same year he became a Vivendi shareholder.