By Adria Calatayud

 

KKR has preliminarily agreed to grant Italy's Finance Ministry a stake of up to 20% in Telecom Italia's fixed-network unit and give it a say in strategic decisions as part of the private-equity group's bid for the so-called Netco business.

The parties signed a memorandum of understanding that contemplates a binding offer for Netco from KKR with the participation of the ministry, the ministry said late Thursday.

Telecom Italia in June said it had entered into exclusive talks with KKR for a Netco sale and gave it a Sept. 30 deadline to submit a binding offer. The move followed a monthslong process in which KKR emerged as the preferred bidder.

The Italian telecommunications company intends to merge its fixed-line network assets--including infrastructure company FiberCop and wholesale business Sparkle--into a newly established company called Netco and separate it from its services operations, a key part of the group's strategic plan outlined last year to reduce debt.

 

Write to Adria Calatayud at adria.calatayud@dowjones.com

 

(END) Dow Jones Newswires

August 11, 2023 03:00 ET (07:00 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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