KKR & Co. Inc. (NYSE:KKR) made a non-binding offer to acquire an unknown majority stake in Italian fixed line network business from Telecom Italia S.p.A. (BIT:TIT) on February 1, 2023. KKR & Co.

Inc. (NYSE:KKR) made a binding offer to acquire an unknown majority stake in Italian fixed line network business from Telecom Italia S.p.A. (BIT:TIT) on October 15, 2023. KKR & Co. Inc. (NYSE:KKR) entered into agreement to acquire an unknown majority stake in Italian fixed line network business from Telecom Italia S.p.A. (BIT:TIT) on November 6, 2023.

Italian fixed line network business which values the business at ?18.8 billion in enterprise terms. The terms of the deal were undisclosed, however as per rumors deal value is ?20 million. The transaction is subject to Board approval of Telecom Italia S.p.A. As o February 21, 2023, KKR & Co. has extended the deadline for offer to March 24, 2023 by the request of Government.

Morgan Stanley acted as financial advisor to KKR & Co. Inc. in this transaction. As of June 19, 2023, Telecom Italia S.p.A. board of directors will complete its examination of the offers received at its scheduled meeting next Thursday (22 June), therefore no decision has been taken at this stage.

As of June 23, 2023, TIM's board of directors agreed to grant a period of exclusivity to KKR with the aim of agreeing on a binding offer by September 30 at the latest. As of August 28, 2023, Italian government approved the transaction. The Italian government gave the green light to the entry State into the transaction along with KKR.

AS of September 21, 2023, KKR & Co. has received to extend the exclusivity period to 15 October in order to conclude the preparatory activities and submit the binding offer. As of October 16, 2023, KKR submitted a binding offer to acquire Italian fixed line network business of Telecom Italia S.p.A. The offer expires on November 8, 2023, subject to the possibility of discussing the terms of further extensions until next December 20, 2023.

Telecom Italia S.p.A. (BIT:TIT) announces that the Board of Directors will meet on 3 November to examine the binding offer on NetCo and the non-binding offer on Sparkle received from Kohlberg Kravis Roberts & Co. L.P. on 16 October, as well as to examine which corporate body is competent to decide on the matter. An informal meeting of the Board (induction) will be held on 4 November to continue the discussion with management and advisors.

The Board will meet again formally on 5 November to deliberate. The agreement comes after earlier TIM's board approved KKR's binding offer for its fixed operations. The sale is seen to be completed by the the summer of 2024, pending regulatory approvals and other customary closing conditions.

Upon completion, the parties will sign a master services agreement about the services to be provided by NetCo to TIM and vice versa, according to a statement of the group. As of December 19, 2023, top investor Vivendi has filed a complaint with a Milan court to challenge the acquisition as the Telecom Italia stressed that Vivendi did not request urgent precautionary measures or injunctions to prevent negotiations with KKR or other parties interested in the purchase. Post completion of the transaction, the Italian operator Telecom Italia S.p.A. expects to reduce its financial debt by around ?14 billion thanks to this transaction.