The plan aims to combine TIM’s fixed network with that of CDP-controlled broadband rival Open Fiber as CEO Pietro Labriola looks to revive TIM’s fortunes via a full-blown split of its landline grid from service operations.
The long-awaited preliminary agreement was also signed by infrastructure funds Macquarie (MQG.AX) and KKR (KKR.N), which hold minority stakes, respectively, in Open Fiber and in TIM’s last-mile network unit.
According to Il Messaggero, Macquarie and KKR will hold 12-15% and 10-13% of the combined entity respectively. While Swisscom’s (SCMN.S) unit Fastweb will get a 1-1.5% stake.
Italy is keen to create a single broadband network champion to avoid duplicating investments and to speed up a fibre optic roll-out and digitalisation of its economy.
CDP also controls regulated gas and power grid companies Snam (SRG.MI) and Terna (TRN.MI).
Under pressure for years in its hyper-competitive domestic market, debt-laden TIM is looking to raise cash by hiving off its landline network, an asset analysts value at between 15 billion and 20 billion euros.
