CDP Equity, KKR, Macquarie, Open Fiber and TIM Ink MoU on Integrating TIM and Open Fiber Networks

Posted on 05/29/2022

Following what was communicated on April 2, 2022, it is announced that CDP Equity (CDPE), a wholly-owned unit of Cassa Depositi e Prestiti (CDP), Teemco Bidco S.à.rl, Luxembourg company controlled by one 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 (MoU) relating to the integration project between the TIM and Open Fiber networks. In 2020, KKR spent 1.8 billion euros for a 37.5% stake in TIM’s last-mile grid 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 the telecommunications networks, not vertically integrated, controlled by CDPE and participated by Macquarie and KKR, which allows to accelerate the diffusion of optical fiber and VHCN infrastructures (Very High Capacity Networks) on the entire national territory, thus allowing access to the most innovative and efficient services offered by the market to the general population, public bodies and businesses, thus contributing to a more rapid, lasting and sustainable development of the Village. With the signing of the non-binding MoU, the parties have undertaken to negotiate exclusively and in good faith the terms and conditions of the transaction with the aim of reaching the signing of any binding agreements by October 31, 2022.

The parties agreed that the transaction can be articulated through the separation of the fixed network infrastructural activities from the commercial ones of TIM – through a corporate transaction or combination of corporate transactions to be defined – and the integration of the former with the network controlled by Open Fiber with modalities to be defined. As a result of this operation, TIM will be able to focus its activities on the Italian market as a priority on telecommunications and data transmission services.

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