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CVC says it has not made new offer for TIM's enterprise arm

Published 07/13/2022, 03:48 AM
Updated 07/13/2022, 07:10 AM
© Reuters. FILE PHOTO: The Tim logo is seen at its headquarters in Rome, Italy November 22, 2021. REUTERS/Yara Nardi
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MILAN (Reuters) -CVC Capital Partners denied on Wednesday a report it had submitted a new proposal to Telecom Italia (BIT:TLIT) (TIM) valuing the company's enterprise service arm about 7 billion euros.

In March CVC made a non-binding proposal for a stake of up to 49% in a venture combining TIM's connectivity services for big corporate clients and public administration as well as cloud, cybersecutity and Internet of things operations.

The approach valued the business at 6 billion euros, including debt, a price tag deemed inadequate by TIM, sources have previously said.

According to a report in Italian daily La Repubblica on Wednesday, CVC raised its valuation for the venture to about 7 billion euros in a new proposal submitted on July 6.

"The only proposal made to TIM's board was dated March 25, 2022, as announced by TIM on March 28," CVC said in a statement.

Last week debt laden TIM sets out its plans to revamp its domestic operations centered around a full-blown separation of its wholesale network operations from its service businesses.

Selling a minority holding of the so-called TIM Enterprise business unit is one of the options TIM is considering to raise cash and cut its debt pile.

TIM Chief Executive Pietro Labriola told reporters last week talks with CVC over a potential stake sale of the telecoms firm's enterprise service arm were ongoing.

($1 = 0.9938 euros)

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