Here is the Mef's offer to Tim for Sparkle
The price does not change, but Telecom may remain in the minority to enhance the international network - Proposal to the Board of Directors on 7 February
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Late yesterday evening the Treasury's offer for Sparkle, the international submarine cable network that also connects the Middle East with the US, arrived at the end of the deadline set for the end of negotiations with the seller Tim. The offer is for 100% of the company - which is considered strategic for the purposes of national security and therefore protected by the golden power - and does not differ from the initial valuation, which was 600 million plus 150 million in possible additional recognitions (earn-outs) up to a maximum of 750 million.
The new proposal valid for 15 days
The difference from the first offer, which had not been judged satisfactory by the Tim board, is that the latter includes a variant that could raise the valuation. Tim itself explained this in a note just an hour after midnight yesterday: in the offer, that is, 'reference is also made to the possibility of negotiating a different option, with possible adjustments to the contractual conditions, in the event that Tim retains a minority share for a certain period of time and supports the realisation of the strategic plan'. This path would still have to be explored, because so far there has been no discussion of it, and nothing is definite at the moment. The offer, however, will be effective for 15 days and will therefore be submitted immediately to the examination of the next board of directors of Tim, already scheduled for 7 February to take stock of the board list to be presented for renewal at the next shareholders' meeting on 23 April. Another board meeting is scheduled for 14 February, for the 2023 budget pre-consolidation, and therefore it is not excluded that the first meeting will not be decisive in this regard.
Direct negotiation with the Treasury: US fund Kkr only in Netco
Telecom Italia had bundled Sparkle together with the network for sale. The network will pass to the Kkr consortium, in which the Treasury will also participate with 20 per cent and F2i with 10 per cent Kkr, for EUR 18.8 billion (plus earnout to EUR 22 billion) to take over Netco, to which the national network will be transferred. Kkr had initially estimated the value of Sparkle at 1.2 billion - in terms of enterprise value (equity plus debt) - knowing, however, that the asset was destined for the Mef. Yesterday the Treasury instead came forward directly and discussions will now go on, without intermediaries, between the institutional interlocutor and the telephone company that is redesigning its future without a network.
