MILAN (Reuters) – CVC Capital Partners has submitted a non-binding expression of interest for a stake up to 49% of Telecom Italia’s (TIM) enterprise services arm, two sources said on Saturday.
The non-binding approach targets a business of the Italian telecoms group which includes cloud, internet of things (IoT) cybersecurity and connectivity services focused on large corporate clients.
Broker Bestinver has pegged a valuation of 10.5 billion euros ($11.5 billion) on the business, based on core earnings of between 730-760 million euros last year.
CVC is proposing a carve-out of the business as part of an ongoing group reorganisation, one of the sources said.
The newly-created entity under CVC proposal would employ some 6,500 people in Italy out of a total of around 42,000 for TIM in the country, the source added.
($1 = 0.9107 euros)
(Reporting by Elvira Pollina and Giuseppe Fonte, writing by Giulio Piovaccari, editing by Alexander Smith and Ros Russell)