CPP Investments to purchase .9B share in Italian telecommunications network transaction

The Canada Pension Plan Investment Board has announced a significant investment of .9 billion in a telecommunications network in Italy. This investment is part of a larger transaction in which CPP Investments will acquire a 17.5 per cent stake in NetCo, a business entity formed from the fixed network assets of Telecom Italia S.p.A. The total enterprise value of this transaction is estimated to be around .5 billion.

The investor group leading this acquisition includes Kohlberg Kravis Roberts & Co., a subsidiary of the Abu Dhabi Investment Authority, the Italian infrastructure fund F2i, and the Italian Ministry of Economy and Finance. The primary objective of NetCo will be to enhance and expand the existing network infrastructure to provide fibre-based services in both urban and rural areas of Italy.

The deal is anticipated to be finalized in the summer of 2024, pending regulatory approval and other customary conditions. CPP Investments’ Managing Director and Global Head of Infrastructure, James Bryce, expressed optimism about the investment, emphasizing the potential for long-term returns and the opportunity for further infrastructure investments in Italy.

This strategic move signals CPP Investments’ commitment to supporting digital infrastructure development in Italy while also delivering value to its investment fund. It represents a significant step towards enhancing connectivity and technological advancements in the region.