Key Takeaways
- • Ardian and an Oak Holdings 1-led consortium are working on financing arrangements for a potential take-private of Italian telecom tower operator INWIT, according to Reuters, citing people familiar with the discussions.
- • The investors are considering an offer for the INWIT shares they do not already own; no final decision has been made and discussions remain ongoing.
- • Ardian holds a 32% stake and Oak Holdings owns 39%; Mubadala is also expected to acquire a stake under the proposed arrangement, per one source.
- • INWIT's market capitalisation stood at approximately €6.3bn ($7.1bn) at Friday's close, down around 27% over the past 12 months, according to LSEG data.
- • Contractual disputes with its two largest customers, TIM and Swisscom-owned Fastweb, which have initiated procedures to terminate their tower agreements, are adding pressure to INWIT's valuation.
Summary
According to Reuters, Ardian and a consortium of investors led by Oak Holdings 1 are working on financing arrangements for a potential take-private of INWIT, the Italian telecom tower operator listed in Milan since 2015. The investors are considering an offer to acquire the shares they do not already own, according to people familiar with the discussions. Oak Holdings 1 is backed by Global Infrastructure Partners (GIP), Vodafone and KKR, and GIP is part of BlackRock. Ardian, a French private equity firm, holds a 32% stake in INWIT, while Oak Holdings owns 39%.
The two groups are in talks with banks about financing a possible transaction, and Abu Dhabi-based sovereign investor Mubadala is also expected to acquire a stake under the proposed arrangement, one source said. Discussions remain ongoing and no final decision has been made. Ardian, GIP, Vodafone, KKR and Mubadala declined to comment, while INWIT said it had no information about the potential deal.
The situation follows takeover speculation that began in February, when reports suggested Ardian and Brookfield were considering taking the business private. The renewed interest comes as INWIT faces challenges with TIM and Swisscom-owned Fastweb, its two largest customers. Both operators have initiated procedures to terminate their existing tower agreements as they seek to renegotiate on more favourable terms.
The dispute has added pressure to INWIT's valuation. The company's market capitalisation stood at approximately €6.3bn ($7.1bn) at Friday's close, a decline of around 27% over the past 12 months, according to LSEG data.
The two groups are in talks with banks about financing a possible transaction, and Abu Dhabi-based sovereign investor Mubadala is also expected to acquire a stake under the proposed arrangement, one source said. Discussions remain ongoing and no final decision has been made. Ardian, GIP, Vodafone, KKR and Mubadala declined to comment, while INWIT said it had no information about the potential deal.
The situation follows takeover speculation that began in February, when reports suggested Ardian and Brookfield were considering taking the business private. The renewed interest comes as INWIT faces challenges with TIM and Swisscom-owned Fastweb, its two largest customers. Both operators have initiated procedures to terminate their existing tower agreements as they seek to renegotiate on more favourable terms.
The dispute has added pressure to INWIT's valuation. The company's market capitalisation stood at approximately €6.3bn ($7.1bn) at Friday's close, a decline of around 27% over the past 12 months, according to LSEG data.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.