Italian telco TIM and Open Fiber – as well as investors CDP, Macquarie and KKR – have signed a document designed to bring the two fibre networks under one roof.
CDP, KKR, Macquarie, Open Fiber and TIM have all signed a ‘Memorandum of Understanding’ designed to enable integrating the fibre networks of TIM and Open Fiber. TIM says this will kick start a process aimed at creating ‘a single, non-vertically integrated telecommunications network operator, controlled by CDPE and participated by Macquarie and KKR, which will accelerate the diffusion of fibre optic and VHCN (Very High Capacity Networks)’ infrastructures’ in Italy.
Apparently all parties have agreed to separating TIM’s fixed network infrastructure activities from its ‘commercial activities’ either through a single or multiple corporate transactions which are to be defined – and ‘the integration of the former with the network controlled by Open Fiber in a manner to be defined.’
TIM began talks with CDP – the private equity arm of state-backed Cassa Depositi e Prestiti (CDP) Group, which holds a 60% stake in Open Fiber and is one of its own shareholders – with a view to defining the terms of a merger in early April. This was viewed as a step in the creation of a single high-speed fibre network in Italy through the integration of TIM’s fixed network assets and Open Fiber’s wholesale fibre infrastructure.
At the beginning of May TIM boss Pietro Labriola said that the deal had not been smooth sailing however, and is quoted as saying¨ “There have been some delays… but stakeholders are interested in carrying out the project. I don’t see problems.”
We are told that following the completion of the transaction, TIM will concentrate on ‘telecommunications and data transmission services’ in Italy as it’s priority. Apparently the aim is to sign any binding agreements by 31st October – but all the regulators and shareholders of concern will then need to have their say on it, and as the release sates there is a fair amount about this that is ‘to be defined.’
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