TIM Group (“TIM”), leading player in the field of telecommunication and related infrastructure, has entered into an agreement with a company owned by Kohlberg Kravis Roberts & Co. L.P. (“KKR”) for the sale of of NetCo, assets related to the fixed network of assets related to TIM’s fixed network (“NetCo”) at an Enterprise Value of € 18.8 billion, without considering any upsides associated to the potential transfer of part of TIM’s debt to NetCo and to earn-outs linked to the occurrence of certain conditions that may increase the value up to € 22 billion.

The transaction implements TIM’s strategic plan envisaging the overcoming TIM's vertical integration by separating its fixed network infrastructure assets from the services that TIM will continue to provide to its retail customers. It will allow TIM to reduce its financial debt by around € 14 billion at the closing.

The closing of the transaction is expected once the preparatory activities for the separation of the fixed network are completed and the precedent conditions are met, including the receipt of the authorizations from relevant authorities.

The NetCo transaction is one of the largest deals in Italy proving the strong presence of Vitale in the market as a financial advisor to large Italian companies and industrial groups.

Vitale acted as financial advisor of TIM Group, providing assistance in the economic and financial analyses, definition and execution of the transaction, management of due diligence activities and negotiations with the counterpart.
 

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