Telecom, Italy announces sale of TIM network to KKR

Brussels – Fixed telephony, mobile, and Internet, Italy is working on the divestment of TIM to the US fund KKR. The government is serious, so serious that it has publicly announced not only its intentions but the very divestment of the infrastructure. “The go-ahead with prescriptions by the Italian government for the sale of the TIM network to U.S. KKR Infrastructure Fund— reads a note from Palazzo Chigi—represents a further and fundamental step in the acquisition of NetCo (a company that holds substantially all of TIM’s fixed network infrastructure), protecting the national interest and guaranteeing state control over the strategic assets of the primary telecommunications network.”

Aware of the strategic nature of telecommunications networks, “a government role is envisaged in defining the strategic choices” to come, Palazzo Chigi assures. In addition, “all essential safeguards are ensured and state oversight of all aspects about the security, defence, and strategic nature of the network and related assets is guaranteed.”

However, the business intention and the management plan will have to be notified to the European Commission, to let the parties’ intentions be known. It needs the green light from the EU executive services to proceed and it needs the appropriate analysis, and assessments on competition and the functioning of the single market. Brussels therefore awaits briefings before it can comment on the matter. The notification is expected to come from KKR by the end of the month.