(Finance) – KKR has requested a TIM an extension to 15 October of the exclusivity period to conclude the preparatory activities and present the binding offer on Netco, the network company.
TIM itself announced this in a note, adding that “the TIM Board of Directors will evaluate the request received at the meeting on September 27th”.
The title TIM had a very positive day on the stock market, placing itself in pole position at the end of the day in the main FTSE MIB basket. The performance was also positive on a weekly basis with a gain of over percentage points.
The news of the letter sent by Vivendi to the Government, to request a meeting and discuss the single network game, possibly before the arrival of the binding proposal of the KKR fund to the Board of Directors, contributed to restoring appeal to the title. The idea could be to discuss aspects of the operation, including the future and consistency of the other company born from the spin-off – Service Co – to avoid an unwanted clash during the approval phase.
The architecture of the operation has already been put in place, to be brought to the Board of Directors’ table by mid-October and to close the network’s game in December. The proposed purchase of NetCo, the company into which the TIM network was merged, should have a value of between 21 and 23 billion euros and will also see the participation of F2i with a 10% stake, of another shareholder ” Italian” with 5% and of the MEF with a minority share of 20% and an outlay of no more than 2-2.5 billion. But the whole issue has always remained in the balance due to the opposition of Vivendi, the largest shareholder of the telephone company with a 23.75% stake. The French, relative majority shareholders of the Italian company, have always opposed the sale, considered too cheap compared to the hoped for 30 billion. Hence the government’s need to involve Vivendi in the operation at all costs and find an agreement even before the dossier is examined by the TIM Board of Directors.