CVC says it has not made new offer for TIM's enterprise arm

Reuters

Published Jul 13, 2022 03:48AM ET

Updated Jul 13, 2022 07:10AM ET

MILAN (Reuters) -CVC Capital Partners denied on Wednesday a report it had submitted a new proposal to Telecom Italia (BIT:TLIT) (TIM) valuing the company's enterprise service arm about 7 billion euros.

In March CVC made a non-binding proposal for a stake of up to 49% in a venture combining TIM's connectivity services for big corporate clients and public administration as well as cloud, cybersecutity and Internet of things operations.

The approach valued the business at 6 billion euros, including debt, a price tag deemed inadequate by TIM, sources have previously said.

According to a report in Italian daily La Repubblica on Wednesday, CVC raised its valuation for the venture to about 7 billion euros in a new proposal submitted on July 6.

"The only proposal made to TIM's board was dated March 25, 2022, as announced by TIM on March 28," CVC said in a statement.

Last week debt laden TIM sets out its plans to revamp its domestic operations centered around a full-blown separation of its wholesale network operations from its service businesses.

Selling a minority holding of the so-called TIM Enterprise business unit is one of the options TIM is considering to raise cash and cut its debt pile.