NEWS | Wednesday, 20 February 2008

GO plc acquires controlling stake in Greek telecoms company Forthnet in a €93m deal

Malta’s quad-play telecoms provider GO plc and Emirates International Telecommunications (EIT), a joint venture of TECOM Investments and Dubai Investment Group (both members of Dubai Holding), announced in a statement last Thursday that they together acquired 21% of Greek telecoms company Forthnet.
This 21% joint shareholding means de facto control in Forthnet from the part of GO and EIT.
Forthnet is one of the most dynamic and fast-growing competitive telecommunications companies in Greece and trades on the Athens Stock Exchange.
The value of the acquisition was €93 million and, makes the joint venture the largest shareholder in the Greek alternative fixed line and broadband operator.
GO plc Chairman Sonny Portelli said that this deal was a very positive news for GO: “The investment to acquire a stake in Forthnet S.A. means a new opportunity to grow our business.
“The investment in Greece underpins our growth strategy and complements the way we continue to develop GO in Malta, with investments such as the launch of the multi-million euro project in the second sub-marine cable, the 3/3.5G mobile technology, and the upgrade of the fixed and digital TV networks.
“However, we are starting to look at new revenue streams and opportunities beyond our shores, and Forthnet S.A. provides such an opportunity for GO,” he said.
“We are on the constant look out to explore areas of co-operation between our company and Forthnet, with a view of enhancing our business and growing shareholder value for the future.
“GO Shareholders can rest assured that their dividends will not be affected and that the investment, into a fellow EU Member State, is a sound one,” Portelli added.
Deepak Padmanabhan, Chief Executive Officer (CEO) of EIT and board member of GO plc said: “EIT is executing on its plan of investing in the telecoms sector internationally, and will deliver superior returns by deploying an active management model, and through combining the capabilities of financial investors with the strategic thinking and sector expertise of a telecoms operator.”
He added: “This exciting acquisition will enable EIT to participate in the least penetrated and fastest growing broadband market in Europe. We are delighted to be able to support and help grow the leading broadband operator in Greece.”