ROME. Tim’s extraordinary board of directors convened today discussed the expression of interest of the US Kkr fund to take over the entire company. All the directors were present, most of them on video connection. The proposal reached the president of Tim Salvatore Rossi from the American fund, a former shareholder of Fibercop.
Tim’s board of directors
Kkr presented Tim with a “non-binding and indicative” expression of interest for a takeover bid on 100% of the shares “aimed at delisting”. It was qualified by KKR as “friendly”. The indicated price to be paid entirely in cash “would be € 0.505”. It can be read in a note released at the end of the Board of Directors. Before launching the bid, Kkr wants to “carry out a confirmatory due diligence with an estimated duration of four weeks”. The expression of interest is bound to this and also “to the approval of the relevant institutional subjects”, or to the opinion of the government which has the possibility of exercising Golden Power over the company.
The proposal, currently only indicative, of a takeover bid of € 0.505 per share, it would be a valuation of over 60% compared to Tim’s value. The premium would be in line with that paid for similar transactions, for example for Iliad which last year paid shareholders a similar premium for the company’s delisting. Compared to the close on Friday, when ordinary shares were quoted 0.3465 euros, the increase is instead of over 45%.
There were also rumors that the board of directors may decide to withdraw the proxies from Luigi Gubitosi, who would still remain a director unless otherwise decided by him.
The government’s reaction
“The Italian government takes note of the interest in Tim shown by qualified institutional investors”, says the Ministry of Economy and Finance in a note, in which it adds: “The interest of these investors to make investments in major Italian companies is positive news for the country. Should this materialize, the market will first assess the soundness of the project“. “The government – it is added – will carefully follow the developments of the expression of interest and will carefully evaluate, also with regard to the exercise of its prerogatives, the projects that affect the infrastructure”. The executive’s objective “is to ensure that these projects are compatible with the rapid completion of the ultra-broadband connection, as set out in the National Recovery and Resilience Plan, with the necessary investments in the development of the infrastructure, and with the safeguarding and employment growth “.
The ministry led by Daniele Franco then held that “to follow the various aspects of the affair is a working group composed of government representatives with the institutional skills mainly involved, as well as the administrations and experts”.
A company, Spadafora: “Tim is a strategic asset; serves golden share “
But the M5S is ready for the barricades. The grillino leader Giuseppe Conte writes on twitter: «The government keeps its guard very high on Tim, ensuring the best protection of national interests and assets that represent a backbone of the country’s growth, development and technological progress. M5s is also at the forefront of guarantees on employment levels “
«Tim is not a company like many others: it is a strategic asset for the country and a fundamental asset, of public interest, decisive for the economic growth of Italy and of our micro, small and medium-sized enterprises. Technological evolution also passes through the telecommunications network and a very high level infrastructure, suitable for the development needs of our SMEs, must be protected. The government led by Mario Draghi must thoroughly evaluate the use of the golden share so that the telecommunications network is not prey to foreign subjects, in the worst case highly speculative funds “. This was declared by the vice president of Unimpresa, Giuseppe Spadafora, according to whom “the Cassa Depositi e Prestiti, already a 10% shareholder of Tim, must play a fundamental role and close, 25 years after the infamous privatization, a dark page of our policy- economic “.
The American fund Kkr is a global investment company that offers management solutions in the insurance, alternative equity and capital markets fields. It is not considered a speculative fund: the declared objective is in fact to generate interesting returns on investments thanks to a prudent and disciplined approach to investments, attracting world-class collaborators and supporting the growth of the companies in its portfolio and of the communities. KKR sponsors investment funds targeting the private equity, credit and real estate segments, and works with strategic partners active in the management of hedge funds. Founded in 1976 as Kohlberg Kravis Roberts & Co, it has been listed on the New York Stock Exchange since 2010, and has grown in various sectors, from infrastructure to real estate, from real estate to hedge funds, completing 280 private equity investments in portfolio company with nearly half a billion in value.
The American fund Kkr is studying the acquisition of Tim’s network
On 4 continents
The fund has offices in 21 cities on four continents (America, Europe, Asia and the Middle East). The fund manages $ 429 billion (nearly € 400 billion) of assets and has a portfolio of 109 companies in its private equity funds generating approximately $ 244 billion in annual revenues. The fund boasts a team of over 1,700 employees, advisors and senior advisors, including approximately 550 investment professionals. The results for the third quarter of the year showed higher than expected revenues thanks to the proceeds from sales in the equity division. Last year Kkr joined Fibercop alongside Tim and Fastweb, with 37.5% of the capital. The US fund is the subject of rumors that see Tim at the center since the beginning of November. On the hypothesis of an offer, a spokesman for Tim clarified on November 5 that the company “does not foresee a reduction of the stake in Fibercop”.