Tim: collapses on the stock market below 0.3 euro, the lowest since October 2020
The title Timafter several stop and go, it lost more than 13%, reaching below the 0.3 euro threshold, up to 0.2965, on the lows since October 2020. Wednesday evening the company released the accounts for 2021, which closes with a loss of 8.7 billion euros, impacted by 4.1 billion in write-downs of goodwill.
Tim: Labriola, no contact with Kkr for withdrawal of offer
The new CEO of Tim, Pietro Labriola, “categorically” denied having had “interlocutions with Kkr for their involvement in the single network”. “The only conversation – he added during a call with analysts – was only on Fibercop”. With the US fund, for the rest, “in recent months” the talks have been carried out “only through the advisors to understand their industrial approach” regarding their expression of interest to take over the entire company, but, of sure, “no dialogue with Kkr to withdraw from the offer”, concluded the CEO.
Single Network: Labriola, Open Fiber the most interesting partner
“I don’t know what decisions the CDP will make. It is clear that from an industrial point of view, CDP with Open Fiber it is clearly the most interesting industrial partner “. This was stated, during a call with press agencies, by the CEO of Tim, Pietro Labriola. “It is up to them to verify and make all the necessary analyzes in order to start more pragmatic discussions and to be able to enter the numbers to possibly explain what could be the efficiencies of the operation”, she added.
Tim, Labriola: “We expect definitive closing for Inwit in June”
Per Inwit “we expect to reach the final closing also through all the antitrust and golden power steps by June”. The CEO of TIM said so Pietro Labriola commenting on the offer received from a consortium of institutional investors led by Ardian, for the purchase of the majority share capital of the holding Daphne 3, which holds 30.2% of the share capital of Inwit, Infrastructure Wireless Italiane. In a meeting with press agencies following the approval of TIM’s business plan, the CEO said the company “has an implicit value of 10.75 euros per share” and explained that the transaction “is an important step forward. of our rationalization of the capital structure “
Tim, the write-down effect brings 2021 into a deep red: -8.7 billion
The plan for separating the network from the rest of the Telecom Italia opens up for the network itself the possibility of entry of an industrial partner such as Open Fiber, and other financial partners. This was stated by the CEO of the former public monopolist Pietro Labriola during a briefing following the approval by the board of the 2022-2024 industrial plan, which aims at the separation of the company into two separate entities and a reorganization business models to bring out their value.
The proposal of Kkrwhich in November submitted an expression of interest to acquire the whole Telecom Italia for 10.8 billion euros, it presents elements of uncertainty that make it difficult to assess, he stressed Labriola. “From what little is known, it aims to separate the network from assets in a similar way to ours,” added the manager, suggesting that the fund “sees an intrinsic value of Tim higher” than the expression of interest. So on the stock market the stock struggles to enter trading after the accounts and the plan, remaining in pre-opening with a theoretical -9.8%.
In a board of directors that lasted over 7 hours, Tim approved the accounts that deliver a 2021 in the red for 8.7 billion, marked by write-downs of 4.1 billion and 3.8 billion derecognition of deferred tax assets, decreeing no dividend for this year. The strategy for the next three years, however, aims to stabilize the EBITDA and bring revenues back to growth between 1 and 3% and to transform the group by creating a Netco in which, together with the network, it will converge Sparkle e una Servco (consumer, enterprise and Tim Brazil). The transformation will be officially presented within the six-month period. The service company will focus on digital, in particular on the Cloud (seen to grow at a rate of 15% per year), on the IoT (+ 10%) and on Cybersecurity (+ 10%).
The company of the Network starting from the coverage of 94% in FTTCplans to speed up the roll out FTTHrealized by FiberCop, reaching 60% of technical real estate units nationwide by 2026 with an increase of about 3 percentage points compared to the previous target. This is the first step towards merging the infrastructure company with Open Fiber. A new Memorandum of Understanding with Cdp to create the Single Network even if, despite the growing expectations, it will still take time to reach an agreement. However, this is the main road that Labriola intends to follow and the advisors on the basis of the new plan will return to discuss with Kkr to find an alternative solution to the takeover bid. The fund, interested in 100% of the company, was willing to offer € 0.505 per share (at market prices today it would represent a premium of over 48%) but did not put a deadline on the negotiations. Returning to the accounts, the revenues of 2021 were equal to 15.3 billion euros (-1.9%) and the organic EBITDA was equal to 6.2 billion (-9.6%). In the fourth quarter, revenues amounted to 4 billion (-4.4%) and the EBITDA amounted to 1.4 billion (-21.9%). Net financial debt as at 31 December 2021 amounted to 22.2 billion euros (17.6 billion euros on an after lease basis), with a reduction of 1.1 billion euros compared to the previous year (1 billion euros). euro on an after lease basis). Finally, Labriola will negotiate the sale of the stake in Inwit with Ardian and a consortium of institutional investors who have submitted a binding offer for the purchase of the majority share capital of the holding company Daphne 3, which holds 30.2% of the share capital of the company. society of the towers.