New chapter begins for Tim as Netco separation completes
Tim, Italy’s main telephone company, is on the brink of a new era with the completion of the separation of its network. After years of attempts and projects, the sale of Netco to US fund Kkr has finally taken place, allowing Tim to focus on its core telephony and internet services.
The sale of Netco will also help reduce Tim’s significant debt, improving its financial leverage. With the birth of Netco set to take place on July 1st, 16 thousand employees in Italy will join the network company, as Kkr and other investors take ownership of Tim’s access network.
Kkr, founded in 1976 and managing over 400 billion dollars in assets, is known for its investments in various sectors such as infrastructure, energy, and real estate. The fund has made several investments in Italy’s telecommunications sector, further strengthening its ties with the country.
However, not everyone is happy about this transition. Vivendi, Tim’s largest shareholder, has opposed the sale of Netco and argued for a higher valuation of the network. The French media giant has even taken legal action to prevent the completion of the sale.
The Italian government is closely monitoring this development under Giorgia Meloni’s leadership as it considers Netco a strategic asset for national development. The government aims to ensure public control over telecommunications infrastructure and extend high-speed internet connections to all regions of Italy, including underserved areas like small municipalities and mountain regions. This move highlights the importance of this transition for Italy’s telecommunications sector as a whole.
Overall, the sale of Netco marks a significant milestone for Tim and its stakeholders, paving the way for a new era for the company that will focus on core services like Clouds and Data Centers while expanding into new markets beyond Italy.
The involvement of international investors like Kkr brings fresh perspectives to Tim’s operations while also providing financial leverage that can be used to invest in new technologies that benefit customers across Europe. Additionally, this transition highlights how important it is for countries like Italy to maintain control over critical infrastructure while also embracing innovation from global partners who can bring valuable resources and expertise to support national development goals.
