Tim: Government allows sale of network to KKR fund

There is a green light. Tim announced that he had received approval from the Meloni government for the sale of NetCo (telecommunications network) to US fund KKR in connection with the gold power legislation, a set of laws that will limit the influence of foreign investors on major Italian companies. . The authority provision for the Council of Ministers to exercise its special powers only in the form of instructions – we read it in a note – made the commitments presented during the procedure its own. Tim explains that these are commitments deemed by the government to be “fully appropriate to guarantee the protection of strategic interests linked to the assets involved in the operation.”

Kkr (Kohlberg Kravis Roberts & Co) is an international private equity operator based in New York. Golden power is a regulatory tool provided in some legal systems that allows the government of a sovereign country to block certain financial transactions or impose certain conditions in the national interest. Government permission was required because telecommunications is among the strategic sectors in terms of national interest. The telecommunications network sold to the US fund consists of a complex of physical and technical infrastructure that allows customers to talk on the phone and browse the Internet.

This entire operation should be completed by the summer and also includes the participation of the Ministry of Economy (which already owns around 10% of Tim’s shares through Cassa Depositi e Prestiti), which will take an approximately 20% stake in NetCo.

“Palazzo Chigi explains in a note: “The green light required by the Italian government for the sale of the TIM network to US infrastructure fund KKR is a further and fundamental step in the acquisition of NetCo (a company that holds substantially all of Tim’s shares). It represents the step “fixed network infrastructures) to protect national interests and guarantee state control over the strategic assets of the primary telecommunications network”.

The executive goes on to emphasize that “it is envisaged that the government will assume a role in determining strategic choices, all essential safeguards are provided and State supervision is guaranteed in all aspects related to the security, defense and strategic nature of the network and related assets.” The text continues: The decision of the Council of Ministers “implements in its provisions the commitments undertaken by the parties, starting from the creation of the security organization, the appointment of the person responsible for Italian citizenship, the granting of exclusive authority in all matters.” Strategically influencing assets from the maintenance and monitoring of research and maintenance activities in Italy”.

In this way, Palazzo Chigi concludes: “A specific framework of strategic control entrusted to the state is outlined. An important step forward in the general definition of the operation, which proceeds according to the announced timelines”.

Source: Today IT