Telecom Italia (TIM) says its board has decided unanimously that it is not appropriate at this time to grant KKR access to due diligence.
In a statement, it says it reviewed a letter from KKR received on April 4 and acknowledged that KKR indicated its inability to confirm its non-binding offer without due diligence. It adds:
In the regard KKR listed the circumstances that determined its inability to confirm the potential transaction:
A profit warning TIM issued in December, which was disclosed on December 15, 2021, followed by lower-than-expected annual results for 2021;
A guidance for the 2022-2024 strategic plan which is significantly below expectations (and significantly lower than broker consensus estimates for 2022), disclosed on March 2, 2022;
TIM credit downgrades with negative outlook from rating agencies.
TIM says KKR has received the above information over the last few months, at the same time as other market participants.
Given that KKR did not confirm its Expression of Interest, including the price therein previously indicated, TIM unanimously decided that it would not be appropriate at this time to grant KKR access to due diligence.
TIM concludes by saying that “should KKR submit a deliverable, complete and attractive offer (including, amongst other things, a price per TIM ordinary / saving share), TIM board of directors would be open to reconsidering its decision in the interest of all shareholders.
“Notwithstanding their stated inability to confirm the terms of their non-binding proposal, KKR ultimately confirmed its interest in exploring any other transactions in the interest of the company, its shareholders and Italy”.
