Telecom Italia completes $24 Billion NetCo sale to KKR

The prosecco corks were no doubt popping at Telecom Italia’s (TIM) headquarters in Rome after the operator’s relieved CEO was able to announce the completion of a long-gestated plan to sell off its fixed-line grid to the Optics BidCo consortium controlled by investment firm KKR. The sale of NetCo for up to €22 billion (U.S. $23.6 billion) also allows TIM to reduce its net financial debt by about $13.8 billion, from an adjusted net financial debt of €26.6 billion at March 31, 2024. After leases, net debt stood at €21.4 billion. NetCo comprises the primary and backbone fixed-line network business of TIM as well as FiberCop, a joint venture between TIM and KKR comprising TIM’s secondary fixed-line network. Following the transaction, TIM’s total headcount will decrease from 37,065 to 17,281. The transaction has been closely watched at international level as it marks the first time a former telecom monopoly in a major European economy is selling off its fixed network.