Open Fiber, the company that brings fiber optics to Italian homes for ultra-fast internet, finds itself at a crucial crossroads. The main shareholders – CDP, which controls 60% through Cdp Equity, and the Australian fund Macquarie, with the remaining 40% – are called upon to decide how to replenish the company's coffers. The amount at stake is about one billion euros, a sum that would also allow for the activation of new loans from a banking consortium, necessary to continue the development of the broadband network, particularly in the “white” and “gray” areas of the country, those with lower economic returns.
The issue became urgent after theagreement of last June between the members and banks for a Total financing of 3,2 billion euros, intended to support Open Fiber's new industrial plan, divided into a bridging loan (1,2 billion) and a long-term loan (around 2 billion, divided between banks and shareholders with a distribution of 55% for the banks and 45% for the shareholders).
Open Fiber: Recapitalization is decisive to avoid restructuring
At the end of June, the company had already received 875 million euros in bank loans and 375 million from shareholders. The remaining amount will have to be covered by new capital intervention by the members, with a total amount of 900 million euros. Part of this sum will have to be covered by the members themselves: CDP will contribute with about 500 million, while Macquarie with 400 million. If all goes according to plan, this capital injection will ensure the financial survival of the company until early 2025.
The difficulties, however, do not end here. The banks who financed Open Fiber (with an exposure of over 6 billion euros) had threatened restructuring proceedings if the company had not recapitalized before December 10. Fortunately, as reported by the Sun 24 Hours, this scenario was avoided, thanks to the CDP meeting set for December 6, which should give the green light to the capital injection as collateral for an additional €1,1 billion loan, maturing in 2029.
Open Fiber: uncertainties on the payment of funds
Le Payment method Of these funds, however, still remain a point of uncertainty. Macquarie has already put 420 million euros on the table, but with a condition: the intervention will be subject to the definition of the areas to be covered with fibre in the grey zones, a matter that depends on the approval of the European Commission.
Cdp, for its part, would like to proceed immediately with a capital increase to close the financing with the banks by the end of the year. Furthermore, the Italian government has already foreseen in the Budget Law 660 million euro di contributions additional for white areas.
Open Fiber: Capital Increase or Bridge Loan?
If the Fund decides to proceed with a capital increase of 630 million euros, Macquarie's share would be diluted, strengthening CDP's position in controlling the company. This scenario could create tensions among the shareholders, also considering that a merger between Open Fiber and FiberCop (the former Tim fixed network) is still on the table. The Italian government has confirmed its interest in a single network project, which could further complicate the dynamics between Cdp and Macquarie.
An alternative to direct recapitalization could be a bridging loan, which would provide immediate liquidity without changing the capital structure, giving more time to resolve issues such as defining the grey areas to be covered by fibre. However, this option also depends on the agreement with the banks, who must finance the loan and negotiate the terms.
