Telecom Italia has completed the sale of its fixed infrastructure unit, NetCo, to a consortium led by investment company KKR. This move, led by CEO Pietro Labriola, is aimed at aiding the sustainable and rapid development of the company. The €22 billion deal, which has been in progress for two and a half years, has faced criticism from some of Telecom Italia’s investors. However, the operator believes it will allow the company to reduce its debt by €13.8 billion.
As part of this transaction, Telecom Italia has also signed a master service agreement that outlines the commercial relationship between the operator and the sold spin-off. This agreement will provide the company with the opportunity to adopt a new business model, allowing it to compete more effectively in the consumer and enterprise markets in Italy. The focus will be on the industrial and commercial aspects of its business, supported by a solid financial structure.
Labriola emphasized that this sale marked a new milestone and a fresh starting point for the company. The decision to separate the fixed network infrastructure services from other services was made to ensure the best, sustainable, and fastest possible development of Telecom Italia. This strategic move aims to position the company for success in the ever-evolving telecommunications industry.
Telecom Italia’s CEO highlighted that this sale would enable them to reduce their debt significantly while allowing them to continue their growth trajectory in Italy’s competitive marketplace. With this newfound financial flexibility, they are now better positioned than ever before to invest in new technologies and expand their customer base.
In conclusion, Telecom Italia’s completion of NetCo’s sale marks an important step forward for their growth strategy as they continue their journey towards becoming one of Europe’s top telecommunications providers.
