Telecom Italia (TIM) has this week confirmed the sale of its fixed network spin-off NetCo to investment firm KKR will close on July 1.

The sale agreement values NetCo at €18.8 billion ($20.1bn), but could be worth as much as €22bn ($23.5bn) with earn-out payments.

TIM, which is Italy's biggest telco, agreed to sell its landline grid network to KKR in November.

The European Commission (EC) approved the deal earlier this month, while the Italian government gave its blessing earlier this year.

The deal, which has been on the cards for some time, has been supported by Giorgia Meloni's Italian government since 2022, which plans to take a 20 percent stake.

Debt-ridden TIM expects the sale to reduce its debt by €14bn ($15.25bn).

TIM's top investor, Vivendi, has previously called the deal "unlawful." The company is said to be considering its future with TIM after a deal was approved by TIM without holding a conditional vote with shareholders.