HomeFinancial/RegulationCanadian pension board to pay €2bn for 17.5% of TIM’s NetCo

    Canadian pension board to pay €2bn for 17.5% of TIM’s NetCo


    Canada Pension Plan Investment Board has holdings in other overseas network operators

    Canada Pension Plan Investment Board (CPP Investments) is to pay €2 billion for a 17.5% stake in Telecom Italia (TIM)’s recently created NetCo.

    The somewhat complicated transaction will be carried out by CPP joining investor group Optics Bidco which is controlled by KKR and heading up the NetCo’s privatisation.

    Optics Bidco includes Azure Vista, a wholly owned subsidiary of the Abu Dhabi Investment Authority, the Italian infrastructure fund manager F2i and the Italian Ministry of Economy and Finance.

    The transaction values the NetCo at about €18.8 billion.

    James Bryce, MD and Global Head of Infrastructure at CPP Investments, stated its investment in the NetCo will generate “long-term risk-adjusted returns for the fund”.

    The transaction should be completed by the end of the year.

    CPP Investments has a shareholding in the US neutral host networks specialist Boldyn Networks, as well as the European Cellnex and V.tal, a Brazilian wholesale fibre network.