Tim, Kkr's proposal gives wings to the stock market share

• Tim: the offer of Kkr is equal to 11 billion, 60% more than the value of the company

• Tim extraordinary board of directors, hypothesis proposed to purchase from Kkr

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November 22, 2021 Tim shines in Piazza Affari and marks an increase of 26.9% to 0.43 euros after the acceleration of the weekend during which a "friendly" purchase proposal from Kkr arrived on the board of the board, the American infrastructure fund with which a collaboration has already started in FiberCop, the company of the last mile of the former monopolist's network.

Kkr has fielded a proposal of € 0.505 per share, although still in the preliminary phase. And the market rewards the takeover bid, with Tim's stock jumping after, at the start of the session, with a theoretical gain of 31%, he failed to make a price.

The Kkr effect not only pushes Tim, but also helps the reference partner Vivendi. Vincent Bolloré's group on the Paris stock exchange gains 2.99% to 11.38 euros. This is the high of the last two months.

After four hours of overtime, Tim announced that Kkr aims to obtain "the approval of the directors of the company and the support of management". At the moment, the estimated due diligence should last four weeks and must obtain the approval of the "relevant institutional subjects", and pass the scrutiny of the 'golden power' of the Government. Kkr's offer provides for a "non-binding, even purely indicative" price of € 0.505 per ordinary or savings share, to be paid entirely in cash. Tim would thus be valued at around 11 billion euros, about 45% more than the company's value at the close of the stock market on Friday.

The Treasury acknowledges "the interest in Tim shown by qualified institutional investors" and the Government "will carefully monitor the development of the expression of interest and will carefully evaluate, also with regard to the exercise of its prerogatives, the projects that affect the infrastructure ". For the Mef, the interest of qualified institutional investors "to make investments in important Italian companies is positive news for the country".

To evaluate the solidity of the project "if it were to materialize, it will be the market in the first place". Thus comes the confirmation of the composition of a "working group," made up of government representatives holding the mainly involved institutional skills, as well as by the Administrations and by experts "to follow the various aspects of the dossier.

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 ". This confirms the request for a response within four weeks by the Americans. During the day, the majority shareholder Vivendi, with 23.75% of the shares, had made it known through a spokesperson that he was "a long-term investor in Telecom" and that he had "been one from the beginning", reiterating "his desire and his will to work alongside the Italian authorities and public institutions for Tim's long-term success ". No contact with any fund, therefore, nor" more specifically, with CVC ", perhaps to seek alternatives to counterbalance Meanwhile, in Kkr. Advent and Cvc, they said they were open to dialogue with all stakeholders to transparently identify a system solution for the industrial strengthening of Tim.

Approximately $ 430 billion under management, 109 portfolio companies and over $ 240 billion in annual revenues. These are the numbers of the Kkr fund, which in Europe is the largest shareholder of the German publisher Axel Springer, and in Spain, together with other funds, owns the fourth national telephone operator MasMovil. There are two investments in Italy: the main one is related to Fibercop, the company to which Tim has conferred the last mile of the network. The stars and stripes fund raised 1.8 billion euros to win 37.5% of the infrastructure company controlled by Tim and also owned by Fastweb. The agreement for the entry of Kkr, announced in August 2020, was finalized last April. The other investment of the US group in our country is Cmc Machinery,Umbrian company from Città di Castello managed by the Ponti family, the main producer of automated packaging solutions in Italy.