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JPMorgan to back KKR’s 45 billion euro financing in TIM deal -paper -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO : The TIM logo at its Rome headquarters, November 22, 2021. REUTERS/Yara Nardi/File Photo

MILAN (Reuters). KKR proposes to purchase MILAN Telecom Italia Italian daily Il Messaggero said that (MI::) (TIM), includes a letter from JPMorgan, (NYSE:) to help finance the 45 billion euros ($51 trillion) necessary for the transaction.

JPMorgan stated in the letter that it is ready to increase its commitment over 45 billion euro if needed.

Both JPMorgan Chase and KKR declined to comment.

Sources familiar with the subject confirmed JPMorgan’s involvement in the arrangement of the funding for the bid. Sources previously stated that JPMorgan had advised KKR along with Citi. Morgan Stanley (NYSE:).

KKR presented a proposal that was not binding to TIM’s board. It suggested a price indicative of 0.505 Euro per share. That would value Italy’s largest telephone group at 10.78Billion euro or 33Billion, which includes TIM’s net debt of 22.5 Billion.

Il Messaggero claimed that the 34 billion Euros in the financing package will be used to refinance TIM’s debts under a “change of control” clause. The additional 11 million euros represents a cash confirm required by market regulators for the payment of the offer’s equity values.

TIM was carrying 30.7 million euros of gross debt as of September. ($1 = 0.8801 euros)

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