(Toronto) The Canada Pension Plan Investment Board is investing $2.9 billion in a takeover bid, in partnership with a group of investors, to acquire the company’s network Italian telecommunications Telecom Italia.
Under the terms of the agreement, RPC Investments will obtain a 17.5% stake in NetCo. The transaction values the company at 27.5 billion.
The investor group buying the company is led by Kohlberg Kravis Roberts & Co. It also includes a wholly-owned subsidiary of the Abu Dhabi Investment Authority, the Italian infrastructure fund F2i and the Italian Ministry of Economy and finances.
The NetCo business will mainly include fixed network assets, which will be separated from Telecom Italia.
Investors should support the completion of a broad upgrade of the existing network to offer fiber optics in urban and rural areas.
The transaction is expected to close this summer, subject to customary conditions.
“Our investment alongside these key partners sharing a long-term vision will deliver high-quality digital infrastructure across Italy and generate long-term risk-adjusted returns for the fund,” said James Bryce, Director general and global head of infrastructure at RPC Investments.
“We are optimistic that NetCo can represent the first of several infrastructure investments in Italy for RPC Investments,” he adds.