Italy's new fifth-largest telecoms operator is born

Tiscali merges with Linkem Retail to create a new heavyweight in the Italian telecoms market.

Posted Wednesday, January 5th 2022
Italy's new fifth-largest telecoms operator is born

Sardinia-headquartered telecoms company Tiscali has announced its merger with Linkem Retail, a unit of private broadband group Linkem. The move will usher into being Italy’s fifth-largest fixed-line telecoms operator.

The share deal will give Linkem a 62% stake in Tiscali, making it the company’s largest shareholder. Meanwhile, with the integration of Linkem’s assets, Tiscali will now have well over a million retail clients in Italy.

Linkem entered the deal partly to fund plans to upgrade its network operations and boost its rollout of 5G. The merger is part of a landscape of telecoms consolidation in Italy; late last year, KKR offered to buy Telecom Italia (in which it already holds a minority stake) for €10.8 billion. Margins in the sector are dwindling, and executives have an eye on EU recovery funds that will help improve broadband connectivity in Italy.

Italo De Santis of Chiomenti led legal advice to Tiscali on the transaction, together with TMT expert Gilberto Nava and tax specialist Raul-Angelo Papotti. Linkem was advised by corporate partners Francesco Gianni and Chiara Gianni of Gianni & Origoni, alongside administrative specialist Antonio Lirosi and regulatory of counsel Giulia Staderini.

 

Legal advisor to Tiscali: Chiomenti

Financial advisor to Tiscali: CC & Soci; Equita SIM

Legal advisor to Linkem: Gianni & Origoni

Financial advisor to Linkem: Banca Akros