Major shareholders in Italian telecommunications infrastructure company INWIT are arranging financing for a possible takeover that would remove the company from the stock market, as a dispute with its main customers adds pressure to the business.
French private equity firm Ardian, which owns 32% of INWIT, and Oak Holdings 1, an investment vehicle controlling 39% and backed by Global Infrastructure Partners, Vodafone and KKR, are exploring a deal to acquire the shares held by minority investors.
The investors are discussing financing arrangements with banks, while Abu Dhabi-based investment firm Mubadala is expected to acquire a stake in the company under the proposed plan. However, discussions remain ongoing, and no final decision has been announced.
INWIT, Italy’s largest mobile telecommunications tower operator, has faced growing uncertainty over its commercial relationships with Telecom Italia and Swisscom’s Fastweb. Both companies have initiated procedures to terminate their contracts with INWIT as they seek to renegotiate terms more favourable to their businesses.
The dispute has added pressure to the company, whose market value has fallen by approximately 27% over the past year to $7.1 billion, equivalent to €6.3 billion, as of Friday’s market close.
INWIT has been the subject of takeover speculation since February, when reports suggested that Ardian and Brookfield were considering a potential acquisition.
A successful transaction would reshape the ownership of Italy’s telecommunications infrastructure sector, although the outcome will depend on financing arrangements and negotiations among the investors.
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