EIT and GO raise stake in Greece operator

Emirates International Telecommunications (EIT) and GO of Malta have, through their special purpose joint venture Forgendo, increased their stake in Greece's leading Pay-TV and broadband operator Forthnet from 34.6 per cent to 37.1 per cent during June and July.

EIT holds 60 per cent stake in GO. The increase in stake was a result of an attractive share price and is a reflection of the companies' belief in Forthnet's potential.

This is the second increase in stake since EIT and GO acquired 21 per cent of Forthnet in February 2008. In October 2008, they increased their stake in Forthnet to nearly 34 per cent taking the total investment value to Dh1.1 billion.

Forthnet, via its Pay-TV brand Nova, is the only premium Pay-TV operator in Greece with exclusive football and movie rights. Forthnet is also the largest competitor to the incumbent in the telecom market.

The current increase in stake represents a strong commitment to Forthnet on behalf of its main shareholders. In addition to Forgendo (EIT & GO) and the Forth Foundation, a Board change in June saw the CEO of Cyrte Investments (which owns a 10.15 per cent stake in Forthnet) appointed to the Board. Cyrte Investments is a Netherlands-based investment company that focuses on the socio-economic impact of technological innovation.

Forthnet, publicly listed on the Athens Stock Exchange, is the largest alternative telephony, internet and video operator in the Greek market.

EIT was founded in 2006 and is the primary investment vehicle in telecommunications for Dubai Holding. A joint venture between Tecom Investments and Dubai Investment Group, EIT was given a mandate to grow shareholder value by investing globally across the telecom value chain.

EIT manages four telecom investments including Tunisie Telecom, the largest provider of telecommunications networks and services in Tunisia; GO, Malta's only quadruple-play operator; and Interoute, which has the largest next-generation network across Europe; Forthnet and NetMed in Greece.

Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here.