Mario Rossetti leave the guidance of Open Fiber. The Board of Directors of the company controlled by CDP (60%) and Macquarie (40%) was convened today, Wednesday 27 September, to formalize the exit of CEO Mario Rossetti from the company that manages the most extensive fiber optic network in 'Italy. On Thursday 28th, however, the CDP Board of Directors will meet, which should appoint the former Acea CEO to replace Rossetti - whose mandate would actually expire in the spring Joseph Gola, with a long past in telecommunications from Enel to Ipse up to Wind. In recent days, the list of names also included Federico Protto and Riccardo Ruggiero, both with technical skills in the sector, but Gola remains the favourite.
Open Fiber under the leadership of Rossetti
The step back of the manager, who has been at the helm of Open Fiber for just under two years, would have been decided by consensus. And above all it would not be dictated by a loss of confidence on the part of shareholders, but by the challenges dictated by the new business plan expected by November, currently the most complex for the company, and from the possible merger with Netco once spun off from Tim.
They weren't missing though political pressures. The vice president of the Senate Maurizio Gasparri he had underlined several times the delays accumulated by the company and also Alessio Butti, undersecretary of the Presidency of the Council for Innovation, had been somewhat polemical about the possibility for the company to achieve its objectives. In reality, looking at the numbers, the laying of fiber under Rossetti's management continued much more rapidly than in previous years.
To date, Open Fiber has accomplished more 70 thousand kilometers of fiber, 76% of what was foreseen in the plan and closed the first half of the year with growing revenues by 28%, equal to 267,5 million and one Ebitda of 102,7 million (+33%). In just two years, the manager would have put in place the same kilometers of network achieved in the previous four years, with a considerable acceleration in the last year. Numbers that have been recognized and appreciated by shareholders and the Ministry of Economy, which controls CDP, but apparently not enough to keep him in place.
Open Fiber: the issues to be resolved
Open Fiber, however, has some problems to solve. Gola will have to complete the new industrial plan, already set in the guidelines, not to mention the refinancing – last March the company approved a capital increase of 375 million – which was also necessary due to the higher costs incurred for covering the white areas and will be closely linked to the new plan. The increase in costs and lower-than-expected revenues (albeit growing) forced OF members to dig into their wallets and to write a letter last June requesting help from the Treasury and Italian institutions. Not only. At stake is the negotiation with Infratel and Mimit on the 20% advance on the Pnrr projects, approximately 360 million: resources, which together with the 375 million of the capital increase (still not completed), will be used to move forward with the works and to refinance new conditions with the creditor banks.
It remains in the background Team, with the meeting scheduled for today and which will be called upon to decide on KKR's request for extend the deadline to submit the binding offer on October 15th.
