Key Takeaways
- • Ardian (32% stake) and Oak Holdings 1 (39% stake, backed by GIP, Vodafone and KKR) are arranging financing for a potential take-private of INWIT, Italy's largest mobile telecom towers company, according to two people close to the matter.
- • Abu Dhabi's Mubadala is expected to take a stake in INWIT as part of the plan, per one of the sources; deliberations remain ongoing.
- • The bid would buy out INWIT's minority shareholders, with the investors currently in discussions with banks over bid financing.
- • INWIT's market value has fallen about 27% over the past year to $7.1 billion (€6.3 billion), per LSEG data, amid a contract dispute with Telecom Italia and Fastweb.
- • Ardian, GIP, Vodafone, KKR and Mubadala declined to comment; INWIT said it had no information on the matter.
Summary
The leading shareholders in INWIT (INWT.MI) are arranging financing for a potential take-private transaction of Italy's largest mobile telecom towers company, two people close to the matter told Reuters. The deal is being explored amid a contractual dispute between INWIT and its two main customers.
French private equity firm Ardian and investment vehicle Oak Holdings 1 are exploring a bid to buy out minority shareholders. Oak Holdings 1 is backed by co-investors GIP, Vodafone and KKR; GIP is part of BlackRock. Ardian controls 32% of INWIT, while Oak Holdings controls 39%. The investors are discussing bid financing with banks, and one person said Abu Dhabi investment firm Mubadala is expected to take a stake as part of the plan. The sources cautioned that deliberations are still ongoing.
Takeover speculation dates to February, when a French media report said Ardian and Brookfield were interested in taking the Italian company private. Since then, INWIT has been in a dispute with Telecom Italia (TIM) and Swisscom's Fastweb, both of which have begun procedures to terminate their contracts with INWIT as they seek to renegotiate on more favourable terms. INWIT, which listed in Milan in 2015, has seen its market value fall about 27% over the past year to $7.1 billion (€6.3 billion) as of Friday's close, according to LSEG data (1 euro = $1.1201).
GIP, Vodafone, KKR, Ardian and Mubadala declined to comment. An INWIT spokesperson said the company did not have any information on the matter.
French private equity firm Ardian and investment vehicle Oak Holdings 1 are exploring a bid to buy out minority shareholders. Oak Holdings 1 is backed by co-investors GIP, Vodafone and KKR; GIP is part of BlackRock. Ardian controls 32% of INWIT, while Oak Holdings controls 39%. The investors are discussing bid financing with banks, and one person said Abu Dhabi investment firm Mubadala is expected to take a stake as part of the plan. The sources cautioned that deliberations are still ongoing.
Takeover speculation dates to February, when a French media report said Ardian and Brookfield were interested in taking the Italian company private. Since then, INWIT has been in a dispute with Telecom Italia (TIM) and Swisscom's Fastweb, both of which have begun procedures to terminate their contracts with INWIT as they seek to renegotiate on more favourable terms. INWIT, which listed in Milan in 2015, has seen its market value fall about 27% over the past year to $7.1 billion (€6.3 billion) as of Friday's close, according to LSEG data (1 euro = $1.1201).
GIP, Vodafone, KKR, Ardian and Mubadala declined to comment. An INWIT spokesperson said the company did not have any information on the matter.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.