CDP Equity, KKR, Macquarie, Open Fiber and TIM Ink MoU on the integration of TIM and Open Fiber networks

Published on 05/29/2022

Further to what was communicated on April 2, 2022, it is announced that CDP Equity (CDPE), a unit wholly owned by Cassa Depositi e Prestiti (CDP), Teemco Bidco S.à.rl, a Luxembourg company controlled by a or more funds managed by Kohlberg Kravis Roberts & Co. LP (KKR), Macquarie Asset Management (Macquarie), Open Fiber and Telecom Italia (TIM), have signed a non-binding memorandum of understanding relating to the integration project between the TIM and Open Fiber networks. In 2020, KKR spent €1.8 billion for a 37.5% stake in TIM’s last mile network unit, FiberCop. CDP owns 10% of TIM and 60% of Open Fiber.

The objective of the MoU is to launch a process aimed at creating a single operator of telecommunications networks, not vertically integrated, controlled by CDPE and in which Macquarie and KKR participate, which makes it possible to accelerate the diffusion of fiber optic and VHCN infrastructures (Very High Capacity Networks) throughout the national territory, thus allowing access to the most innovative and efficient services offered by the market to the population, public bodies and businesses, thus contributing to faster, sustainable and sustainability of the Village. With the signing of the non-binding Memorandum of Understanding, the parties have committed to negotiate exclusively and in good faith the terms and conditions of the transaction with the aim of reaching the signing of any binding agreement by October 31, 2022.

The parties have agreed that the transaction can be articulated by the separation of the fixed network infrastructure activities from the commercial activities of TIM – by a corporate transaction or a combination of corporate transactions to be defined – and the integration of the former with the network controlled by Open Fiber with terms to be defined. Thanks to this operation, TIM will be able to focus its activities on the Italian market primarily on telecommunications and data transmission services.

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