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TI.A - Telecom Italia SpA News Story

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Last Trade - 05/07/19

Sector
Telecoms
Size
Large Cap
Market Cap £8.70bn
Enterprise Value £33.41bn
Revenue £13.61bn
Position in Universe th / 6651

UPDATE 1-Enel kicks off sale of Open Fiber stake to Macquarie

Thu 17th December, 2020 6:41pm
* Sale to be worth up to 2.65 bln euros 
    * Deal could pave the way to wider network deal with TIM
    * Stake sale expected to be completed by June 30, 2021

 (Adds detail, background)
    By Stephen Jewkes and Elvira Pollina
    MILAN, Dec 17 (Reuters) - Italy's biggest utility Enel
 ENEI.MI  kicked off the sale of up to 50% of fast broadband
company Open Fiber to Australian infrastructure fund Macquarie
on Thursday, in a move that could open the way to the creation
of a full-fiber national network.
    Enel, which jointly controls Open Fiber with state lender
CDP, said it had given a mandate to its CEO to sell between 40%
and 50% of the company to the Australian fund in a deal worth up
to 2.65 billion euros ($3.3 billion) excluding earn outs.
    The deal, expected to be completed by the end of June, also
includes a series of earn-out clauses, including one linked to
the positive conclusion of a legal dispute between Open Fiber
and phone incumbent Telecom Italia  TLIT.MI . 
    A sale by Enel of its stake could clear the way for a
government-sponsored plan to merge Open Fiber with the last-mile
grid unit of TIM and create a unified ultrafast broadband
network.
    CDP, which is the second-biggest shareholder in Telecom
Italia behind French media giant Vivendi  VIV.PA , would emerge
as a prominent investor in the combined entity.
    Enel said another earn-out clause in the agreement with
Macquarie revolved around actual implementation of the "single
broadband network" with TIM. 
    Sources have previously said Rome wants Macquarie to buy
less than 50% so CDP can take control of Open Fiber and make
sure the blueprint for a single network is respected.
    Enel said any deal to sell its whole 50% stake would be
subject to Macquarie and CDP sharing the "modification of
certain aspects that currently regulate the governance of Open
Fiber."
    It also said the sale was conditional on Open Fiber allowing
Macquarie to share due diligence data with a small number of
co-investors so it could syndicate the asking price.
    

($1 = 0.8156 euros)

 (Reporting by Stephen Jewkes, Elvira Pollina, editing by Giulia
Segreti, Kirsten Donovan)
 ((stephen.jewkes@thomsonreuters.com; +39.0266129695; Reuters
Messaging: stephen.jewkes.thomsonreuters.com@reuters.net))
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