Tim, the Italian telecommunications company, once the leader in Italy, is expected to be sold to a network company called NetCo, controlled by the U.S. fund Kkr, but with a secondary 20 percent stake in the Italian Ministry of Economy.
Yesterday, the Italian government, which has the “golden power” to veto the transaction, instead gave its consent to the sale of the telecommunications group to Kkr and thus gave the go-ahead for the closing of the deal. The authorization measure, by which the Council of Ministers exercised special powers in the form of prescriptions only, endorsed the commitments presented during the proceedings. The Italian government, with this commitment, shows it is completely sure about the safety of the new company and its management of the Italian and Italy-centered communication network.
Palazzo Chigi: it iss a key step toward TIM rebirth
“The go-ahead with prescriptions by the Italian government for the sale of the TIM network to the U.S. infrastructure fund KKR represents a further and fundamental step in the acquisition transaction of NetCo (a company that holds substantially all of TIM’s fixed direct infrastructure), protecting the national interest and guaranteeing state control over the strategic assets of the primary telecommunications network.” The Italian government note on Golden Power says:
“A role of the government in the definition of strategic choices is provided for, all essential principals are ensured, and state supervision of all aspects related to the security, defense, and strategic nature of the network and its assets is guaranteed,” the government continues. “The resolution of the Council of Ministers,” the note further stresses, “incorporates in the prescriptions the commitments that the parties have made, starting with the creation of the security organization, the appointment of the person in charge of Italian citizenship, the exclusive competence over all matters incident to strategic assets, the maintenance in Italy of research and maintenance activities, and monitoring. “Thus, a certain framework of strategic supervision entrusted to the state is outlined. This is an important step forward in the overall definition of the operation, which is proceeding according to the announced timetable,” Palazzo Chigi concludes.