Ardian and a consortium of investors led by Oak Holdings 1 are working on financing arrangements for a potential take-private of Italian telecom tower operator INWIT, according to Private Equity Wire citing a Reuters report. The investors are considering an offer to acquire the shares they do not already own in INWIT, according to people familiar with the discussions cited in the same report.
Parties involved and current ownership
Oak Holdings 1 is backed by Global Infrastructure Partners (GIP), Vodafone and KKR, while French private equity firm Ardian is another key shareholder, according to Private Equity Wire. Ardian holds a 32% stake in INWIT, with Oak Holdings owning 39%, according to the report.
GIP is part of BlackRock, according to the same report. Mubadala, an Abu Dhabi-based sovereign investor, is also expected to acquire a stake in the company under the proposed arrangement, one source said, according to Private Equity Wire.
Financing discussions and status
The two groups are in talks with banks about financing a possible transaction, according to the report. Discussions remain ongoing and no final decision has been made, the sources cautioned.
Ardian, GIP, Vodafone, KKR and Mubadala declined to comment, while INWIT said it had no information about the potential deal, according to the report.
Business context: customer disputes and valuation
The potential transaction comes as INWIT faces challenges involving Telecom Italia (TIM) and Swisscom-owned Fastweb, which the report describes as INWIT’s two largest customers. Both operators have initiated procedures to terminate their existing tower agreements as they seek to renegotiate the contracts on more favourable terms, according to the report.
The dispute has added pressure to INWIT’s valuation, according to the report. INWIT’s market capitalisation stood at approximately €6.3bn ($7.1bn) at Friday’s close, representing a decline of around 27% over the past 12 months, according to LSEG data cited by Private Equity Wire.
Prior speculation and listing history
INWIT listed in Milan in 2015, according to the report. INWIT has been the subject of takeover speculation since February, when reports suggested Ardian and Brookfield were considering taking the business private, according to the report.
