The Abu Dhabi Investment Authority, which controls almost $1 trillion in assets, is part of the KKR & Co.-led consortium acquiring Telecom Italia’s landline network.
ADIA is one of the controlling investors of acquisition vehicle Optics Bidco, according to a statement that Telecom Italia filed late Monday. The sovereign wealth fund’s involvement was first reported by Bloomberg in July.
The bidders have offered to buy Telecom Italia’s fixed network in a blockbuster deal valued at as much as €22 billion ($23.6 billion). KKR has partnered with the Italian government on the deal, which could provide a lifeline for the debt-laden former phone monopoly.
ADIA has backed some of the largest buyout deals in Europe this year, including EQT AB’s approximately £4.5 billion ($5.5 billion) take-private of UK veterinary drug maker Dechra Pharmaceuticals Plc. The fund is also part of a private equity-led investor group weighing a buyout of European online classifieds company Adevinta ASA.
The Italian government is set to get a 20% stake in the network unit as part of the Telecom Italia deal, and Prime Minister Giorgia Meloni has set aside as much as €2.5 billion in state funds to invest in the company.
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Still, Telecom Italia’s top shareholder Vivendi SE has said it will challenge the deal in court as it seeks to block the sale.
--With assistance from Dinesh Nair.
