GO increases stake in ForthNet

11 Jul 2008

GO (formerly Maltacom) has acquired additional shares in Greek alternative telco ForthNet via its jointly-owned holding company Forgendo to take its ownership stake to 25.45%, it announced yesterday. In January CommsUpdate reported that Forgendo, which is owned in equal portions by Maltese telco GO and the latter’s majority owner Emirates International Telecommunications (Malta) (EITM), bought a 21% stake in ForthNet for EUR93.83 million, making it the largest shareholder in the fixed line and broadband operator. Since then it has upped its holding in increments via the Athens stock exchange. Forgendo is an intermediary holding vehicle registered in Cyprus, whilst EITM is a joint venture of Tecom Investments and Dubai Investment Group, both part of the Dubai Holding group. ForthNet is the largest competitor to incumbent telco OTE in Greece’s broadband market by subscribers, with the most extensive unbundled local loop network of the country’s alternative operators, according to TeleGeography’s GlobalComms database.

In a further announcement yesterday, ForthNet informed its shareholders of the scheduled commencement of a pre-emption rights trading period running from 18-28 July. The announcement follows the approval in May of an increase in ForthNet’s share capital by EUR137.56 million with pre-emption rights in favour of existing shareholders at a ratio of three new shares for one existing share. A total of 116.57 million new common registered shares will be issued.

Greece, Forthnet (Nova)