Network Tim, that’s who is stunned by Vivendi’s shots
Who, how and why the institutional and non-institutional interlocutors who gravitate to the Tim network dossier are stunned after the latest numbers spotted by Vivendi through the international news agency Reuters
Shocked. This is how the institutional and non-institutional interlocutors who gravitate to the Tim dossier define themselves after the latest firing of numbers by Vivendi's French (who have 23.8% of Tim).
Vivendi aims to obtain a valuation of 31 billion euros for the Telecom Italia (Tim) network with the unbundling of the infrastructure of the former telephone monopolist from services.
This is the news launched by the international agency Reuters on the basis of "a source close to the Parisian company",
Among the firm points of the French shareholder is the issue of the debt to be transferred with the spun-off network, which must be at least 10 billion euros.
The overall valuation of Tim's fixed-line assets for Vivendi would be € 31 billion, including debt, the source added to Reuters, noting that all of this is in the interest of all Tim's shareholders.
But are we sure that everyone is interested in it? And if shareholders and investors still know nothing about the precise perimeter of the future network company (will Sparkle also be part of? And Telsy? And will Noovle be part of the spun-off segment ?, are some of the unanswered questions) how do you communicate to the world the requests? These are some of the questions that are raised on the market and in the Roman palaces, first and foremost the Ministry of Economy, shareholder of Cassa Depositi e Prestiti, partner of Tim.
The plan, with the details of the perimeters, will be presented to the market on 7 July. But Vivendi, from the height of her prosopopoeia, knows everything and asks for everything: perhaps even the moon.
Last month Tim signed a memorandum of understanding with Cassa Depositi e Prestiti to create the so-called single network with Open Fiber, of which Cassa, Tim's second shareholder with 10% of ordinary capital, holds a 60% stake.
The goal of the MoU is to reach a binding agreement on the creation of a single network company, separate from Tim and under the control of Cdp, by the end of October.
This company would be held by the infrastructure funds Macquarie and Kkr, which respectively hold a 40% stake in Open Fiber and 37.5% in FiberCop, where Tim brought together the secondary network, destined to be spun off together with the rest of the fixed network. and to Sparkle, Reuters recalls.
As part of this process, Tim is evaluating the possibility of divesting the infrastructure, valuing it at around 20 billion, including debt, according to two sources.
But Vivendi's CEO Arnaud de Puyfontaine declared – much to the bewilderment of the institutional subjects – in an interview with Repubblica on May 31 that the Parisian group is not willing to accept a sale of the infrastructure at the values indicated by analysts, including 17 and 21 billion euros.
Under pressure for years in the domestic market characterized by growing competition on the price front, in April Tim rejected the non-binding purchase proposal of 10.8 billion euros by Kkr, which valued the entire company about 33 billion including the net debt
At close of stock exchange on Friday, Tim capitalized 5.3 billion euros, while as of March 31st the net debt was around 23 billion euros.
As for the so-called service company, Vivendi – continues the source – intends to remain a long-term shareholder of these activities, in which the French company intends to concentrate its strategic commitment, the French group tells Reuters.
Analysts heard by Starmag are more than skeptical of the numbers spotted by Vivendi.
Because?
The 66.6% stake in Tim Brasil, listed on the Sao Paulo and New York (NYSE) stock exchanges, is worth 3.81 billion euros at the current price.
Added to the 2.71 billion euros corresponding to the current value of the 30.2% stake in Inwit, listed on Piazza Affari, it brings the value of the first two investments of the Italian operator to a total of 6.52 billion euros.
"It constitutes – remarked Milano Finanza in a technical analysis – 23.2% more than the 5.28 billion euro corresponding to the current stock market capitalization of Tim, eloquent evidence of the significant state of undervaluation".
If the market undervalues, Vivendi overvalues.
With a boomerang risk: that the overvaluation of the network is a bad signal for investors on the content company Tim post-split of the network.
Vivendi's “ vast program” risks being small.
That's why in these hours between Palazzo Chigi, Mef and Cdp the astonished people swarm.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/rete-tim-vivendi/ on Mon, 20 Jun 2022 13:27:40 +0000.