This is part of the disentangling process as major network assets in Italy change hands
Swisscom’s Italian subsidiary Fastweb is to sell its 4.5% stake in FiberCop to Optics Bidco, a subsidiary of KKR. FiberCop was established in 2021 by Telecom Italia (TIM), KKR and Fastweb to develop national fibre broadband infrastructure in Italy.
KKR will acquire all shares held by Fastweb in FiberCop for a cash consideration of €438.7 million, which is in line with the pro rata price paid by KKR to TIM for its stake.
Setting up the NetCo
KKR is in the process of acquiring TIM’s fixed network in a transaction worth about €22 billion. The deal was “unconditionally” approved this week by the European Commission and has the backing of the Italian government. The government retains the right to intervene in anything that affects the so-called NetCo as it is classed as critical national infrastructure.
The sales of its stake in FiberCop to KKR’s subsidiary is subject to the completion of the NetCo transaction by KKR, which is expected to close in Q3 2024. The transaction has no effect on the wholesale agreement between Fastweb and FiberCop, according to Swisscom.
Fastweb’s future
Meanwhile, Fastweb is in the throes of the approvals process to acquire Vodafone Italy for €8 billion which it hopes will be completed next year and will transform it into fixed-mobile operator.
In the announcement today, Swisscom stated, “Fastweb remains fully committed to its mission of driving innovation and connectivity in the country through investments in key telecommunications infrastructures.
“Fastweb will therefore keep making relevant investments to increase the coverage of its proprietary, end-to-end controlled fiber network and will continue to be a key provider of wholesale services to third parties, ensuring the availability of robust and competitive offerings in the market.”