The Ministry of Economy enters the field for Tim’s network together with Kkr. The memorandum of understanding between the American fund Kkr and Mef was signed today, on August 10. The deal, among other things, provides for the formulation of a binding offer that allows the Treasury to enter network company Tim’s Netco with the purchase of a 20 percent stake along with Kkr.
The MEF will therefore be in the minority, but the deal states that Netco, Tim’s network, “envisions that the terms of the proposal, in terms of relations between the parties, envisage a decisive role in determining the government’s strategic choices.” The next steps will “concern the adoption of a Dpcm to complete the procedural process” with regard to institutional response. The government should meet on 28 August and at that time approve the decree on MEF’s entry into the team’s network: In fact, there is until 30 September for the binding proposal to be formalized.
Tim’s Netco could therefore see the light by the end of the year. Kkr reserves for itself a majority stake in the company to which the national incumbent corporate network will be transferred, but the Treasury, in itself, would give the tricolor team a “blocking minority” weight in the backbone of national telecommunications. This leaves Vivendi’s room for maneuver to stop the operation.
Meanwhile, Kkr needs to finalize deals to finance the 23 billion euro operation, and the banks’ commitment is reportedly due by August 30. The financial commitment for the government should be up to 2 billion euros (considering that the ‘equity’ portion of the offer will be around 10 billion euros and the rest is debt that will end in Newco). So the fund will have one month to complete its binding proposal, and in October Tim’s board of directors will meet to consider it. If Vivendi deems it necessary to call the shareholders to vote at the meeting, a settlement can be reached by the end of the year.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
