CPP will invest in a consortium spearheaded by private equity firm KKR, that also includes a subsidiary of the Abu Dhabi Investment Authority, Italian infrastructure fund F2i and the Italian economy ministry.

The deal was approved by TIM’s board in November, and given the greenlight by the Italian government in January.

‘Our investment will help deliver high-quality digital infrastructure across Italy as well as generating long-term risk-adjusted returns for the fund,’ said James Bryce, managing director, global head of infrastructure, at CPP Investments.

The sale of the network will create a wholesale company that will provide broadband capacity to TIM and other telecoms operators in Italy.

The sale is part of TIM’s strategy to reduce its debt from €25 billion euros, with the transaction potentially reducing debt by as much as €14 billion.

The business is valued at an enterprise value of €18.8 billion.