TIM, Open Fiber sign MoU for merger of fiber assets

May 31, 2022

If the companies reach agreement, TIM will divest itself of its fixed network infrastructure assets “through a corporate transaction or combination of corporate transactions to be defined” that would then be combined with those of Open Fiber.

Stephen Hardy

Italy’s TIM and Open Fiber, along with their respective major investors, have signed a non-binding memorandum of understanding (MoU) that will launch a negotiation designed to lead to a merger of their respective fixed network assets. The parties hope to reach such an agreement by the end of this October.

If the companies reach agreement, TIM will divest itself of its fixed network infrastructure assets “through a corporate transaction or combination of corporate transactions to be defined,” according to a joint statement, that would then be combined with those of Open Fiber. TIM would then focus in Italy on marketing its service offerings.

The investors involved include CDP Equity (CDPE), a company wholly owned by Cassa Depositi e Prestiti (CDP) and an investor in both TIM and Open Fiber; Teemco Bidco S.à.r.l., a Luxembourg company controlled by one or more funds managed by Kohlberg Kravis Roberts & Co. L.P. (KKR) that also has a stake in TIM (see “KKR makes a run at Telecom Italia”); and Macquarie Asset Management, which has invested in Open Fiber (see “Macquarie signs agreement to take stake in Italy’s Open Fiber” and "European Commission approves CDP/Macquarie takeover of Open Fiber"). Should the combination occur, CDPE would own a controlling interest, with KKR and Macquarie participating as well.

TIM and Open Fiber state the potential deal would accelerate the deployment of fiber and “very high capacity networks” throughout Italy. The negotiations will be conducted “in compliance with the regulatory constraints on infrastructure activities, internal authorization processes and the interests of their respective shareholders, investors and stakeholders, as well as in full, transparent and prior consultation with all relevant national and EU authorities,” the companies added. Any agreement would be subject to the normal approval processes, including approval by TIM’s shareholders.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.