The TIM Group concluded this Monday (1st) the sale of its fixed network infrastructure in Italy to American investment manager KKR, in an operation valued at 22 billion euros (R$132 billion), including earn-outs.
The fixed network infrastructure and wholesale activities were transferred to FiberCop, a company in which TIM held 58% of the shares.
Then, all of FiberCop's capital was purchased by Optics BidCo, a company controlled by KKR.
As a result, the Italian group's workforce fell from 37.065 to 17.281 people. According to a note from TIM, the relationship with its now former fixed network arm will be regulated through an agreement valid for 15 years, renewable for another 15, and services will be provided at market price, with no minimum acquisition commitment.
“TIM will continue to be the reference telecommunications company in Italy and with the largest infrastructure, offering innovative fixed and mobile services, serving families, public entities and companies”, said the group's CEO, Pietro Labriola.
TIM's objective was to get rid of its fixed network infrastructure to reduce debt – estimated at 25,6 billion euros at the end of 2023 – and focus on services, including the profitable Brazilian branch.
“The completion of the operation is the result of two and a half years of work, which served to realign TIM's management and identify solutions that will allow us to face the next challenges”, added Labriola.
Italy's Finance Minister, Giancarlo Giorgetti, said that the operation is “the first piece of a puzzle to solve this country's historical problems” – the government also participates in the deal and will have up to 20% of the new fixed network company . (HANDLE)
