Telecom Italia (TIM) has once again delayed the sale of its subsea cable business, Sparkle, agreeing to extend the deadline for a binding offer until December 16, 2024. This marks the latest in a series of setbacks for the long-anticipated deal, which has been in the works for months.
In a statement released late on Saturday, TIM’s Board of Directors confirmed that it had accepted a request from the Italian Ministry of Economy and Finance (MEF) and its partner, Retelit, a subsidiary of Asterion Fund, for additional time to finalize the binding bid. This follows a series of non-binding offers for the strategic national asset, which includes Sparkle’s extensive subsea cable network.
The Italian government, along with Retelit, first submitted a non-binding offer for Sparkle in February 2024, but TIM quickly rejected the bid because it was too low. The MEF returned with a revised offer of EUR 700 million in October, but TIM’s board pushed back again, citing the need for better terms. With the end of November deadline already passed, TIM has agreed to extend the negotiations by another two weeks.
While the delay may raise questions about the deal’s timing, TIM has stressed that the discussions are progressing, and there are no signs of the deal falling through. According to the company, the negotiations with the government and Retelit remain advanced.
Latest: TIM Invests in Cloud Expansion and New Data Center Near Rome
KKR Withdraws from Deal
KKR, the U.S.-based investment firm, is no longer involved in the Sparkle sale. KKR, which took control of TIM’s former networks business earlier this year, reportedly disagreed with both TIM and the government over the valuation of Sparkle, which remains uncertain. This development further complicates the deal, as KKR’s exit leaves the future valuation of the subsea operator still unclear.
Despite the ongoing delays, TIM recently received a cash injection that could help offset some of the uncertainty surrounding the Sparkle sale. Last week, the company completed the sale of its remaining 10% stake in the Italian tower business, INWIT, raising EUR 250 million in proceeds. TIM did not disclose how it plans to use these funds, but given the company’s ongoing focus on deleveraging, it’s likely that the money will go towards reducing its debt load.
