Tim's board "highly appreciated the interest expressed" by KKR, but asked the company “An Improved Offer” to be presented by March 31, 2023. The company made it known through a note released after the board which met to examine the non-binding offer presented by the American private equity fund on February 1 for the purchase of a stake in the Telecom Italy network.
Kk's offer concerned in particular a share of netco, which will have in itself the landline, included FiberCopas well as participation in Sparkle.
Tim's response to Kkr: "Offer to be improved, does not reflect the value of the asset"
It was supposed to be “judgment day”, it turned into a interlocutory appointment, in which the board examined the US fund's proposal for the first time.
“Tim's Board of Directors met today, chaired by Salvatore Rossi, to review the non-binding offer submitted by KKR dated February 1, 2023 (the “NBO”) for the purchase of a stake in a company which essentially controls the management and infrastructural perimeter of the fixed network, including the assets and businesses of FiberCop, as well as the stake in Sparkle (so-called "NetCo"), the company said in a statement.
The board examined the content of the offer, but also the extension letter arrived last February 21 "also with the help of analyzes and insights carried out by management with the support of advisors". The fund has in fact extended the fund by 4 weeks the offer which will thus end on March 24th and not March XNUMX as previously planned. The extension, as announced by Tim, is due to “one Government request to have a further four weeks to carry out a joint analysis of the public aspects of the operation concerning the powers exercisable by the Government in the sector".
“In the light of the information received – continues Tim – the Board greatly appreciated the interest expressed in the aforementioned NBO, while considering that the same does not fully reflect the value of the asset and Tim's expectations also in terms of the sustainability of the company resulting from the transaction contemplated therein”.
In this context, in order to "facilitate the alignment of the conditions of the proposed transaction with the relevant strategic framework for Tim, the Board resolved to make available to KKR - not exclusively - some specific information items and to request the further information necessary to fully understand the assumptions and economics of the proposal". The purpose? “Receive an improved offer, as a result of the aforementioned exchanges of information and within the deadline of 31 March 2023".
Title Tim in the spotlight
In MY BAG, investors' eyes are focused on the title Tim who during the session achieved one of the best performances of the Ftse Eb. After the release of the note by the company, Tim shares gained 1,16% to 0,306 euros per share.
