TIM, KKR INFRASTRUCTURE AND FASTWEB: FINALIZED THE AGREEMENT FOR THE ENTRY INTO THE OWNERSHIP OF FIBERCOP

FiberCop, thanks to the adoption of the open co-investment model will allow all operators in Italy to participate in the project

The new company will accelerate the closure of the digital divide with the aim of reaching 76% of the real estate units in the gray and black areas of the country via FTTH

TIM, KKR Infrastructure and Fastweb announce the execution of the agreements related to the entry of KKR Infrastructure and Fastweb into the capital of FiberCop, the new company in which TIM’s secondary network (from the street cabinet to customers’ homes) and the fiber network developed by FlashFiber, the joint venture of TIM (80%) and Fastweb (20%), have been merged.

As announced last August 31, the purchase by KKR Infrastructure of 37.5% of FiberCop from TIM was concluded for a countervalue of €1.8 billion, based on an enterprise value of approximately €7.7 billion (equity value €4.7 billion); at the same time Fastweb subscribed to FiberCop shares corresponding to 4.5% of the company’s capital, through the contribution of the 20% held in FlashFiber, which was simultaneously incorporated into FiberCop. The company is fully operational as of today.

As a result of the completion, FiberCop’s Board of Directors will be composed of nine directors, five of whom will be designated by TIM, three by KKR Infrastructure and one by Fastweb. Mr. Massimo Sarmi will be Chairman and Mr. Carlo Filangieri CEO.

It is estimated that FiberCop will have an EBITDA of approximately EUR 0.9 billion per year and positive EBITDA – CAPEX from 2025 and will not require capital injections from shareholders.

FiberCop will allow TIM, Fastweb and other operators to co-invest by completing fiber coverage plans in black and gray areas of the country and accelerating the adoption of Ultra-Broadband (UBB) services, based on an open co-investment model. On January 29, TIM presented to AGCOM and to the market the co-investment offer related to FiberCop secondary network in accordance with the European Electronic Communications Code.

FiberCop has a network asset that already offers UBB connections to over 90% of the population thanks to FTTC and FTTH technologies. The company will continue FTTH coverage, with connection speeds of up to 1 Gigabit, with the goal of reaching 76% of real estate units in gray and black areas by 2025, corresponding to coverage of 56% of the country’s technical real estate units.

The new company will immediately offer passive access services of the secondary network in copper and fiber to all market operators. FiberCop leverages on the fiber infrastructure already laid by FlashFiber, without duplication of investment and with maximum efficiency, while promoting competition.

The operation will contribute significantly to the reduction of the digital divide in Italy, allowing an acceleration of the transition of customers from copper to fiber.