CVC makes non-binding bid for stake in TIM’s enterprise services -sources

Industry:    2 months ago

CVC Capital Partners has submitted a non-binding expression of interest for a stake up to 49% of Telecom Italia’s (TIM) enterprise services arm, two sources said on Saturday.

The non-binding approach targets a business of the Italian telecoms group which includes cloud, internet of things (IoT) cybersecurity and connectivity services focused on large corporate clients.

Broker Bestinver has pegged a valuation of 10.5 billion euros ($11.5 billion) on the business, based on core earnings of between 730-760 million euros last year.

CVC is proposing a carve-out of the business as part of an ongoing group reorganisation, one of the sources said.

The newly-created entity under CVC proposal would employ some 6,500 people in Italy out of a total of around 42,000 for TIM in the country, the source added.