The Meloni government gives the go-ahead for the entry into the Telecom Italia network, agreed with the KKR fund

The Italian government today approved a series of decrees to acquire a maximum of 20% of the network infrastructure provider Telecom Italia (TIM) for €2,200 million as part of the agreement signed with investment fund American KKR.

Giorgia Meloni’s Council of Ministers approved two decrees: one to raise the necessary funds for the investment, around 2,200 million euros, and another to allow the Ministry of Economy to enter the company’s shareholders,

The return of the state to Telecom Italia will in any case be a minority, with a maximum of 20% of the capital, as explained in a press conference by Economy Minister Giancarlo Giorgetti.

“In this way we want to ensure the exercise of special powers and guarantee the strategic and security policy opportunity to influence what we believe to be a crucial network for the future of the country,” he said.

On August 10, Italy’s economy ministry signed a memorandum of understanding with KKR investment fund for the purchase of telecom giant Telecom’s fixed line network, in which the state will hold up to 20% of the resulting company, dubbed NetCo.

Telecom Italia has reached an agreement with the KKR fund to sell its fixed network

Last June, Telecom (also known as TIM) accepted the offer from the US investment fund KKR to take over its fixed network, estimated by the business press at around 23 billion euros, and integrate it into NetCo.

“A unanimous mandate has been issued to enter only improved negotiations with KKR with a view to receiving submission – in any event before September 30 – of a final and binding offer,” the company reported.

The decision led to the rejection of the bid by the consortium of Cassa Depositi e Prestiti (CDP), of which the Ministry of Economy is the main shareholder, and the Australian investment fund Macquarie.