Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Exclusive: Abu Dhabi wealth fund in talks with KKR over Italian grid deal - sources

Stock MarketsNov 30, 2020 12:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Giuseppe Fonte and Elvira Pollina

ROME (Reuters) - Abu Dhabi's biggest sovereign fund is in talks with U.S. firm KKR to invest in Telecom Italia (MI:TLIT)'s (TIM) last-mile network in a deal that has drawn scrutiny from Italy's government, three sources close to the matter told Reuters.

Rome typically welcomes foreign investments but demands assurances that investors will follow the country's national interests. The government has special vetting powers to block unwanted bids in industries deemed of strategic importance.

TIM agreed in August to sell KKR a 37.5% stake of a newly created company, FiberCop, into which it has transferred its 'last-mile' network connecting street cabinets to people's homes.

KKR now wants to sell up to 30% of the unit that will hold that stake to Infinity Investments, a subsidiary of the Abu Dhabi Investment Authority (ADIA), as it looks for co-investors in the Italian deal, the sources said, asking not to be named.

Abu Dhabi would then hold up to 11% of TIM's last-mile grid, provided the government authorised the deal.

"ADIA would be an indirect and passive investor," one of the sources said.

The Italian Prime Minister's office, TIM, ADIA and KKR all declined to comment.

Italy's industry ministry has informed the cabinet office of KKR's plans, and a technical body in charge of scrutinising foreign investments in strategic Italian assets plans to hear TIM's views on the matter in early December, the sources added.

Rome this month gave its conditional green light to KKR's acquisition of the last-mile network stake, demanding that the firm commit to a government-sponsored plan to create a unified ultra-fast broadband network. The government wants TIM to merge its landline grid, running from switching centres to households, with rival Open Fiber, which is jointly controlled by utility Enel (MI:ENEI) and state lender Cassa Depositi e Prestiti (CDP).

Infinity Investments and KKR notified the government following the first clearance to the FiberCop deal, the sources said.

Co-sharing an investment is a normal practice funds use to reduce risks.

Australian fund Macquarie is considering the possibility of syndicating the purchase of a minority stake in Open Fiber from Enel, people familiar with the matter told Reuters last week.

The move has irked CDP, which does not want potential co-investors to have governance rights, one of the sources said on Monday.

 

Exclusive: Abu Dhabi wealth fund in talks with KKR over Italian grid deal - sources
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email