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.
Still, Telecom Italia’s top shareholder Vivendi SE has said it will challenge the deal in court as it seeks to block the sale.
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