Linklaters has advised CK Hutchison on the carve-out of Wind Tre’s mobile and fixed telecoms network into a joint venture, the investment by EQT of a 60% stake in the joint venture, and the entry into a long-term services agreement between the joint venture and Wind Tre’s retained retail telecoms business. The deal values the joint venture at EUR 3.4bn (enterprise value).
As part of the carve-out, Wind Tre, a leading Italian telecoms operator, transferred its active telecoms equipment (radio antennas, base stations etc.) and its wholesale mobile and fixed telecoms business into the joint venture, along with c.2000 employees (who will transfer in two waves and will include Wind Tre’s current CEO) and shareholder debt. The shareholder debt will be repaid on closing by way of a third-party facility arrangement which will be drawn down at that time. Following completion of the transaction, Wind Tre will become the joint venture’s anchor tenant and, under the long-term services agreement referred to above, the joint venture will provide wholesale fixed and mobile services to Wind Tre, allowing Wind Tre to continue providing retail services to its millions of customers across Italy.
The transaction is conditional on regulatory approval in the EU and China, and is expected to complete within six to nine months.
