(Bloomberg) -- Private equity firms Asterion Industrial Partners and Nextalia Sgr are among potential bidders for BT Group Plc’s troubled Italian arm, people with knowledge of the matter said.
The buyout funds are preparing to submit indicative offers for BT Italia SpA as a deadline in late July for bids approaches, the people said, asking not to be identified as the information is private.
The divestment attempt comes as the London-listed telecom firm seeks to part ways with its Italian arm after an accounting scandal in 2017 led to a £530 million ($690 million) provision in its accounts as well as a lengthy trial. Earlier this year, eight people including former BT Italia employees were convicted for manipulation of financial statements and for fraud.
Madrid-based Asterion could bid via Italian fiber-network operator Retelit, which it bought in 2021, one of the people said. Nextalia, founded by Italian investment banker Francesco Canzonieri, could make an offer through its credit opportunities fund, which raised more than €330 million ($361 million) last year, another person said.
BT Italia generated about €300 million of revenue last year, according to public filings. It serves large corporate clients including Stellantis NV and Eni SpA, according to the one of the people. Some of the potential bidders see a need for BT to inject more than €100 million into the Italian business to repair its balance sheet, said another person.
Deliberations are ongoing and the potential suitors could decide not to proceed, the people said. Representatives for Asterion, BT Group and Nextalia declined to comment.
--With assistance from Yazhou Sun and Rodrigo Orihuela.
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