TORONTO — The Canada Pension Plan Investment Board has committed to invest $2.9 billion as part of an investor group buying a telecommunications network in Italy from Telecom Italia S.p.A.
Under the agreement, CPP Investments will acquire a 17.5 per cent stake in NetCo as part of a transaction that values the business at an enterprise value of about $27.5 billion.
The investor group buying the company is led by Kohlberg Kravis Roberts & Co. and includes a wholly owned subsidiary of the Abu Dhabi Investment Authority, the Italian infrastructure fund F2i and the Italian Ministry of Economy and Finance.
The NetCo business will be primarily comprised of the fixed network assets being separated out from Telecom Italia.
The investors are expected to support the completion of an extensive upgrade to the existing network to deliver fibre-based services in urban and rural areas.
The deal is expected to close in the summer of 2024 subject to customary conditions.
"Our investment alongside these key partners with a shared long-term vision will help deliver high-quality digital infrastructure across Italy as well as generating long-term risk-adjusted returns for the fund," said James Bryce, a managing director and global head of infrastructure at CPP Investments.
"We are optimistic that NetCo can represent the first of several infrastructure investments in Italy for CPP Investments."
This report by The Canadian Press was first published March 8, 2024.
The Canadian Press
