Rumours of On Telecoms, Cyta Hellas share swap deal

2 Sep 2009

According to Greek newspaper Capital.gr, a proposal is on the table for a tie-up between rival broadband operators On Telecoms and Cyta Hellas, involving the acquisition of the latter by On Telecoms via an exchange of shares in which the Cypriot-owned company would become a shareholder of triple-play provider On Telecoms. However, Cyta Hellas’ owner, state-run Cypriot incumbent telco Cyta, indicated that the proposed deal would not take place, as it played down previous reports that the Greek subsidiary would have no access to investment capital because the Cyprus government would not approve the required funding. Cyta said that a business plan presented to the Cypriot Finance Ministry involved financing through a combination of equity and borrowing from the banking sector. Meanwhile, On Telecoms is in the process of attempting to complete two other merger deals, namely the acquisition of two other Greek broadband players, Vivodi Telecom and Net One (including Algonet).

Greece, Cyta Hellas, On Telecoms (incl. Vivodi)